Examlex
The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.
Differential Cost
Differential cost, or incremental cost, is the difference in total cost that will result from selecting one option over another in decision-making.
Relevant Costs
Relevant costs are those costs that should be considered when making decisions. They are directly affected by the decision in question and can include future costs that will differ among alternatives.
Fixed Manufacturing Expenses
Costs that do not vary with the volume of production, such as rent, depreciation of manufacturing equipment, and salaries of permanent factory staff.
Selling and Administrative Expenses
Expenses incurred from selling products or services and managing the business, excluding production costs.
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