Sell Now or Process Further Homework Help
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What is Sell Now or Process Further?
It is a choice from the management of any company or firm to decide whether to sell the product right after the production or to extend the selling to earn certain additional revenues by adding up some more details to it. An incremental analysis is made that eventually tells whether the product can ascertain additional revenue that will exceed the additional cost that will incur during the post processing of product. In this article for Sell Now or Process Further homework Help we see how this decision strategy improves the revenue of a company.
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Methods to Carry Out Sell Now or Process Further Process
Further the classification of methodologies is compiled by our Sell Now or Process Further homework Help experts as follows
1. Incremental approach: Also known as differential approach, this method helps to evaluate the difference between the extra revenue generated and extra cost for further processing. The product is understood to be processed further only if the resultant comes in positive.
2. Opportunity cost approach: the net revenue from the further processed finished item is subtracted with the opportunity cost of not selling the item to find out the opportunity cost. As per our Sell Now or Process Further homework Help article, the solutions with only positive differences are supposed to move forward.
3. Total project approach: it is also called as a comparative statement approach. Both the selling and further processing profit statements are compared in this Sell Now or Process Further homework Help article and the one who is providing higher profit is chosen.
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