Accounting data is very helpful in the decision-making process. For example, if you were to buy a car you would need to know all the costs associated which includes the costs of your current car, the costs of the new car, and the funds available to cover those costs. The same is true in accounting. All sorts of data is available to help managers make decisions. They can also break that data down into various categories to make it even more useful.

To help you begin to understand the kinds of data that accountants can provide, answer these questions:

1 - What is the difference between an opportunity cost and a sunk cost? Share an example of each with the group.

2 - Define variable, fixed, and mixed costs. Share an example of each with the group.

3 - What is the formula for the contribution margin ratio? How is it useful in the decision-making process?

***Please respond with at least 300 words