Writing Essays. by Eleanor Wakefield. There are several vital elements to any successful college essay. This handout. will define those elements and show you how to put them together using an. outline. Following this format will help you keep your thoughts organized and. get your essay underway.
A relevant cost (also called avoidable cost or differential cost) is a cost that differs between alternatives being considered. In order for a cost to be a relevant cost it must be: 1  Future. 2  Cash Flow.  Incremental.
The total incremental cost to Division A will be the wages to the temporary staff, training costs, incremental costs of arranging the temporary employment and allocation to Division B, etc.; suppose that these costs total $67,000.The appropriate transfer price (cost) for Division Bâs investment analysis is $67,000. The relevant cost (the relevant charge) to be assigned to a unit is the estimated incremental cash flow cost caused by the unit. If the allocated cost is significantly different from the estimated incremental cash flow cost, then ignore the allocated cost.