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Qualitative factors, sunk costs, factors for managers, financial ratios, break even analysis, questions help (1-2 paragraphs each)
- Explain 4 qualitative factors that may be extremely important in the decision making process. (qualitative factors are: quality requirements, reputation of outsourcer, employee morale, and logistical considerations -distance from plant, and so on)
- Explain some of the factors that are important to managers when deciding to make, buy or lease an asset (equipment or facility) for business purposes.
- Are sunk costs relevant or irrelevant? Why?
- What are the differences between relevant and irrelevant costs?
- Explain the purpose of each of the financial statements in the decision making process.
- How can financial ratios help managers make better decisions?
- Why is break even analysis important in management decision making?