Decision Making and Relevant Costs at Infiniti

Requirements:

1. Use relevant costing techniques at Infiniti to make a decision on outsourcing customer service operations.

Option	Relevant Costs ($)
In-House Customer Service	12,000,000
Outsourced Customer Service	10,000,000

• Analyze the relevant costs and benefits of managing customer service operations in-house versus outsourcing for Infiniti.
• Evaluate the qualitative factors that Infiniti should consider when making the customer service decision.
• Recommend the most cost-effective option based on relevant costing analysis for Infiniti's customer service operations.