When making an operating decision, are all future costs relevant? Explain.
4.2 Identify several ways in which confirmation bias might affect a manager’s special order decision.
4.3 An organization is currently operating at capacity. Should it accept a request for a special order based on variable cost
plus 40%? Explain.
4.4 Refer to the quantitative decision rule for special orders. Would this same general decision rule apply to a decision to sell
last–minute event tickets at a discounted price? Explain. Identify two other businesses with a similar pricing situation.
4.5 Describe several methods that can be used to relax constrained resources.
4.6 In your own words, distinguish between quantitative and qualitative information.
4.7 Grover Nursery is a large nurserythat has always raised the bedding plants it sells. The managers recently decided to buy
bedding plants from a Explain how managers decide which products in a sales mix to emphasize in the short term.in another state. List several quantitative factors that might encourage the
managers to buy from another grower. List several qualitative factors that might encourage the managers to grow their
own plants.
4.8 List two business risks that often need to be considered when making a decision about whether to outsource a product or service.
4.9 Explain how managers decide which products in a sales mix to emphasize in the short term.
4.10 Explain how opportunity costs arise in make or buy and keep or drop decisions.
4.11 List at least three different types of decisions that you studied in this chapter and give an example of each one for a retail
clothing factory outlet store.
4.12 List two business risks that often need to be considered when making a decision about whether to accept a special order.
