Listed below, are some number of activities managers may perform. Identify which of these activities are steps in management’s decision-making process and place those steps into the order in which they should be executed. Activities listed may be used once, more than once, or not at all.
1. Analyze how changes in cost structure affect CVP relationships.
2. Make the decision.
3. Eliminate the product line.
4. Evaluate the costs and benefits of the alternatives.
5. Prioritize products to maximize short-term profits.
6. Determine the decision alternatives.
7. Process the product further.
8. Review the results of the decision.
9. Use cost-volume-profit analysis to determine sales needed to break even.
10. Identify the decision problem.