Managerial Accounting

Chapter 5 discusses relevant information to make decisions by discussing pricing as opposed to operations discussed in Chapter 6. Notice that both Chapter 5 and Chapter 6 relate to information necessary to make decisions by focusing on relevant information. Chapter 5 does this by focusing on pricing and Chapter 6 does this by focusing on operations. For this discussion, choose two of the new concepts from Chapter 5 including absorption costing, contribution approach, marginal cost, marginal revenue, price elasticity, target costing, or special pricing and discuss. Regardless of the topic you choose (topics in above paragraph), research a company of your choosing or choose a company you currently work for or have worked for in the past.

Discuss how the company could or has encountered any one of the situations above. Using fictitious or actual figures, relay the financial implications