Cost The Analysis for Decision Making project is intended to be a comprehensive evaluation of the key
objectives covered throughout this course. It will challenge you to apply your knowledge of cost
information when evaluating the decision to make or buy a product. Please use this outline and grading
rubric as a guide to completing your course project. It provides specific details of the required elements of
the project, and it will be used by your instructor as a grading guide.
Read Integrative Case 4-61, "Make versus Buy," on pages 151 and 152 of the course text. Assume that
you are the general manager (Mr. Walsh) faced with this decision. You have identified the following four
alternatives available to Liquid Chemical Co.
Alternative A: It is the status quo. (i.e., Liquid Chemical Co. will continue making the containers
and performing maintenance.)
Alternative B: Liquid Chemical Co. will continue making the containers, but it will outsource the
maintenance to Packages, Inc.
Alternative C: Liquid Chemical Co. will buy containers from Packages, Inc., but it will perform the
maintenance.
Alternative D: It is completely outsourced. Packages, Inc. will make the containers and provide
the necessary maintenance.
Your project should include the following items:
Part (a): Discuss each of the four alternatives outlined above. Identify the relevant costs
(including amounts) for each of the four alternatives, and explain why these costs are relevant to
the decision. Identify any costs that are not relevant, and explain why they are not relevant. What
are the advantages and disadvantages of each alternative? Who benefits and who loses?
Part (b): Other than the relevant costs identified in Part (a), what additional information would you
use when making your decision? Are there financial factors other than those identified in the case
study that you would incorporate into your decision? What nonfinancial information would affect
your decision?
Part (c): As the general manager, which alternative would you choose, and why? Support your
conclusion with facts and figures, as necessary.
Guidelines
The following guidelines should be used when completing your project:
The essay must be at least three to five pages in length, double spaced, and 10 point Arial or
Times New Roman font.
Even though this is not a necessarily a scientific writing paper since it is in creative nature,
references are still important. At least one authoritative, outside reference is required
(anonymous authors are not acceptable). These should be listed on the last page titled "Works
Cited." The reference page does not count towards the minimum page count.
Appropriate citations are required.
All DeVry University policies are in effect, including the plagiarism policy.
Essays are due during Week 7 of this course.
Any questions about this paper may be discussed in the weekly Q & A Discussion topic.
This paper is worth 150 total points and will be graded on quality of content, organization, proper
use of citations (as necessary), and grammar and sentence structure.
Grading Rubrics
Category
Points %
Description
Address all parts of the project in sufficient detail. Demonstrate
an understanding of course content through its proper
60%
application to the decision in the case study. Provide support
for your analysis and decision.
17% Present a clear analysis of the decision in the case study.
Arrange your responses to all of the parts of the project in a
Content
90
Organization &
Cohesiveness
25
Documentation &
20
Formatting
Editing
15
Total
150
logical fashion.
Use the project guidelines described above. Essays should be
in Arial or Times New Roman, 10 point font, double spaced,
and a minimum of 3 to 5 pages, excluding the cover page and
13%
the reference page. Effectively use information from the course
text and outside resources, properly citing in the body of the
report, where appropriate, and in the reference page.
Use proper grammar and English. Avoid typos, spelling errors,
10%
slang, and jargon.
A quality paper will meet or exceed all of the above
100%
requirements.
Best Practices
While not required, the following are best practices in preparing this paper:
Cover Page: On the cover page, include who prepared the paper, who you prepared the paper
for, and the date.
Table of Content: List the main ideas and sections of your paper and the pages in which they are
located.
Additional hints on preparing the best possible project:
Apply a three step process of writing: plan, write, and complete.
Complete a first draft, and then go back to edit and evaluate.
Use visual communication to further clarify and support the written part of your report. You could
use graphs, diagrams, charts, and tables.