Questions 1. What are differential revenues and costs? 2. What is differential analysis? 3.Define what is meant by a "make-or-buy" decision. Describe how differential analysis can be used to assist in making this type of decision. 5. What is an avoidable cost? 8. Why are direct fixed costs typically differential costs? 9. Why are allocated fixed costs typically not differential costs? 11. Review "Business in Action 7.2". What did Kmart do with 24 of its stores? Why might Kmart have taken this action? 13. Review"Business in Action 7.3". Why did A BCO Automation, Inc., fire its biggest client even though the client provided close to 60 percent of ABCO's annual revenue