What are the differences between relevant and irrelevant costs?, question help (1-2 paragraphs)

  1. Explain 4 qualitative factors that may be extremely important in the decision making process. ( Quantitative factors are:

    —Quality requirements

    —Reputation of outsourcer

    —Employee morale

    —Logistical considerations—distance from plant, and so on)

  2. Explain some of the factors that are important to managers when deciding to make, buy or lease an asset (equipment or facility) for business purposes.
  3. Are sunk costs relevant or irrelevant? Why?
  4. What are the differences between relevant and irrelevant costs?
  5. Explain the purpose of each of the financial statements in the decision making process.
  6. How can financial ratios help managers make better decisions?
  7. Why is break even analysis important in management decision making?

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