1. List the six key concepts in decision making.
2. What is the key to choosing between alternatives?
3. Explain the difference between relevant and irrelevant costs and benefits. What is the importance of understanding these concepts?
4. Explain how you would identify a differential cost and revenue.
5. Is there a relationship between the concepts of differential cost and incremental cost?
6. Explain the concept of differential costs and revenues.
7. Provide a detailed example of an avoidable cost.
8. Define a sunk cost. Based on the definition you provided create example of a sunk cost.
9. In finance and business, in general, the concept of opportunity cost is essential to understand.
   • Define the term opportunity cost.
   • Provide an example of opportunity cost based on your explanation.
10. Review the illustrated example for Cynthia in deciding between transportation alternatives. For items a - m, choose three that you find the most difficult to understand and explain why it is so.
11. Compare and contrast the differential approach to the total cost approach as methods of decision analysis.
12. Explain the reasons for isolating relevant costs.
13. Explain the concept of the value chain and a vertically integrated company (this concept was first introduced in preface (or chapter 1 in the 15^th edition).
    • Explain advantages/disadvantages of vertical integration.
    • Think of familiar corporations that are vertically integrated. Provide at least two names and how they are vertically integrated.
14. When a manager is analyzing a make or buy decision her decision should be based upon __________________.
15. Explain why the following costs should not be used in the analysis Mountain Goat Cycles: depreciation, allocated general overhead,
16. How is the concept of opportunity cost presented in the section on make or buy decisions?
17. What is a special order decision?