Question
1) Describe what makes a cost relevant when making a decision between two alternatives. 2)Imagine you are a manager of a snack food company. You
1) Describe what makes a cost relevant when making a decision between two alternatives.
2)Imagine you are a manager of a snack food company. You need to make a decision whether you should manufacture a new cheese curl or purchase it from another manufacturer and re-sell it to your customers. Discuss what factors are relevant in this decision and how you would make the right decision.
3) What is a constraint in a manufacturing process? Why does it make sense to concentrate on contribution margin relative to the constrained resource instead of contribution margin per unit in these cases?
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