Question: In your reading this week, you learn about the role of differential analysis in making important management decisions. Some decisions management commonly encounters include: One-time-only
In your reading this week, you learn about the role of differential analysis in making important management decisions. Some decisions management commonly encounters include: One-time-only special orders Short-term pricing Make vs. buy International outsourcing Product mix with capacity restraints Customer profitability Adding/Dropping product lines, divisions, offices, etc. Keeping or replacing equipment For this discussion, pretend that you started a new business one year ago (any type of business of your choice) and address the following points: Explain one of these decision types that you might expect to confront in your new business. Identify relevant costs and revenues that would influence your decision. Describe any sunk costs, opportunity costs, and qualitative factors that you would consider. Based on this analysis, explain the decision you would make and explain why
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