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FUNACC52.xlsx - 8.6 Steps in Building a Decision Model...

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8.6Steps in Building a Decision Modelmeasurement criterion.3.Develop information for each alternative.4.Construct incremental analysis of alternatives.5.Prepare formal report to management.8.7Marginal Costing and Decision Makingusefulness for short-term decision. In this chapter we identify and focusfacilities.relevant3.In these circumstances the selection of the alternative which8.8Limiting factor analysisManagers are often faced with a short-term lack of resources. This is a
period is too short, that is in the short- run period. These othelack of space or machine hours.than one product, in such a manufacturing environment:
resource (limiting factor).8.9Decisions involving a single limiting factormachine capacity, then the management must ensure that a productionfactor.resource, the approach to determining the optimal production plan is as1.Identify the scarce resource (limiting factor).each product.Note:
100.0069.0085.0051.6035.0042.405.003.954.2527.2019.8021.00resource consumed.
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Term
Fall
Professor
NoProfessor
Tags
Economics, Marketing, Neoclassical economics, short term decision

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