Reference no: EM132586960

Question 1. What are differential revenues and costs?

Question 2. What is differential analysis?

Question 3. Define what is meant by a "make-or-buy" decision. Describe how differential analysis can be used to assist in making this type of decision.

Question 4. and provide two different formats for presenting the same analysis. Describe the similarities and differences in these two formats.

Question 5. What is an avoidable cost?

Question 6. Review Why did Salt Lake City choose to outsource the concrete panels to a company in Mexico City even though the library was being constructed in Salt Lake City?

Question 7. How is differential analysis used in deciding whether to keep or drop product lines?

Question 8. Why are direct fixed costs typically differential costs?

Question 9. Why are allocated fixed costs typically not differential costs?

Question 10. What is an opportunity cost? Why is an opportunity cost a differential cost?

Question 11. Review What did Kmart do with 24 of its stores? Why might Kmart have taken this action?

Question 12. How is differential analysis similar for customer decisions and product line decisions?

Question 13. Review Why did ABCO Automation, Inc., fire its biggest client even though the client provided close to 60 percent of ABCO's annual revenue?

Question 14. What two important assumptions must be considered when evaluating special order scenarios?

Question 15. What is cost-plus pricing?

Question 16. Describe the four steps of target costing.

Question 17. Describe the five steps used to manage constraints according to the theory of constraints.

Question 18. What is a qualitative advantage of keeping unprofitable customers?

Question 19. What are joint products and joint costs?

Question 20. Describe the two methods of allocating joint costs