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How would you define opportunity cost using examples ofdecisions you make on a daily basis ? Why would it be important toconsider opportunity costs in the decision-making process forbusiness?
Think about your current or past employer and possible decisions they may have had to make in the past regarding a make or buy decision. What do you think the relevant costs were in making this decision ( be specific)? Also, many managers make these decisions based on short-term results and decisions are not always based on ethical considerations. Comment on your employer example and the short term vs long term factors and ethical considerations that may have (or should) have gone into the decision to make or buy.
show us examples on how to use relevant cost analysis andstrategic analysis for the following business decisions:
To make special order decisions.
To make, lease, or buy decision.
To sell before or after additional processing