Chapter 25:Differential Analysis, Product Pricing, and Activity-Based Costing

Requirement 1:

A diversified food company is considering the closing of its condiment division. What qualitative factors should be considered before discontinuing a division or product line?

Requirement 2:

An automobile manufacturer has decided to allow outside suppliers to bid on all parts necessary to make its vehicles. What qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?