• Review the example of Krogers decision process in deciding to make changes on p. 463 and prepare to discuss the results.
• Prepare to discuss managerial decision-making. Ensure the following points are addressed:
  • Understand the information required for short-term decisions.
  • Identify and explain the six pitfalls described in Chapter 8 and why they represent unacceptable risks to decision-making by managers.
• Six Pitfalls
  • Sunk costs
  • Unit costs
  • Absorption Costing
  • Common fixed expenses
  • Constraint decisions
  • Outsourcing decisions