Relevant Information for Special Decisions

1. Identify the characteristics of relevant information.

2. Recognize sunk costs and explain why they are not relevant in decision making.

3. Distinguish between unit-level, batch-level, productlevel, and facility-level costs and understand how these costs affect decision making.

4. Identify opportunity costs and explain why they are relevant in decision making.

5. Distinguish between quantitative and qualitative characteristics of decision making.

6. Make appropriate special order decisions by analyzing relevant information.

7. Make appropriate outsourcing decisions by analyzing relevant information.

8. Make appropriate segment elimination decisions by analyzing relevant information.

9. Make appropriate asset replacement decisions by analyzing relevant information.

10. Explain the conflict between short- and long-term profitability. (Appendix)

11. Make decisions about allocating scarce resources by analyzing relevant information. (Appendix)