The management accounting technique typically applied in this situation is marginal costing. This method separates costs into variable and fixed categories, making it easier to determine the additional (marginal) costs incurred by producing extra units. The management accountant would also rely on the principle of relevant costing, which focuses on future costs that differ between alternatives. For instance, only those costs that will change as a result of a decision are considered. Past costs (sunk costs) and fixed costs that do not vary with production levels are typically ignored unless they are affected by the closure or continuation of the factory.