INCREMENTAL COST SEBAGAI SALAH SATU ALTERNATIF PADA PENGAMBILAN KEPUTUSAN JANGKA PENDEK

Abstract

Relevant cost has been considered as an important factor in decision
making based on the concept of different analysis for different purposes. One
type of relevant cost is incremental cost, which is additional cost when an
alternative is not chosen in a process of decision making.
A decision can be classified as long and short range decision. Example of
short range decision is special order, which is order from a buyer asking price
below normal price, and often management directly refuses this order without
further consideration. Concept of incremental cost can be used to evaluate this
kind of problem.
Some considerations in implementing the concept include cost
identification, idle capacity, and variable costing system. Incremental cost
analysis involves comparison among additional order, additional cost and
contribution margin from the special order. This concept supported by variable
costing method is important for companies implementing job order costing system
before deciding to accept or refuse a special order.