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Making decisions is one of the basic functions of a manager. To be successful in decision making, managers must be able to perform differential analysis.

Making decisions is one of the basic functions of a manager. To be successful in decision making, managers must be able to perform differential analysis. Students are required to:

1. Define differential analysis.

2. Explain how the differential analysis is prepared.

3. Explain all decisions for which differential analysis can be used and give a numerical example for only one decision.

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