Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 15

What are some nonfinancial factors in decisions to drop a product line?

Step 1 of 3

Decisions:

Some types of decisions that involve incremental analysis are:

• Make or buy decisions

• Replacement decisions

• Expansion projects

• Lease or purchase decisions

Financial information that a manager may use to make decisions:

• Cost of capital

• Operating cash flows

• Rate of return

• Financial ratios