SUBJECT: MANAGERIAL ACCOUNTING

TOPIC: DIFFERENTIAL ANALYSIS

Select a company that displays its financial statements and, think about the types of financial data that would be included and excluded in differential analysis.

Propose which specific revenues and costs should be considered in an evaluation to drop or keep a :-

i) Customer

ii) Product line

iii) Explain sunk and opportunity costs as they relate to your selected company.

Should these costs be considered in differential analysis? Why or why not?