Web Chapter 25 Section 2

Web Chapter 25 Section 2 - Capital Budgeting and Capital...

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Unformatted text preview: Capital Budgeting and Capital Budgeting and Managerial Decisions Managerial Decisions Chapter 25, Section 2 Chapter 25, Section 2 NOTE: Focus on pages 1008 - 1015 NOTE: Focus on pages 1008 - 1015 Decision making involves five steps: Decision making involves five steps: 1. 1. Define the decision task. Define the decision task. 1. 1. Identify alternative actions. Identify alternative actions. 1. 1. Collect relevant information on Collect relevant information on alternatives. alternatives. 1. 1. Select the course of action. Select the course of action. 1. 1. Analyze and assess decisions made. Analyze and assess decisions made. Decision Making Decision Making Variable Costs Variable Costs Fixed Costs Fixed Costs Mixed Costs Mixed Costs Decision Making Decision Making Relevant Costs Relevant Costs Sunk Costs Sunk Costs Out-of-pocket costs Out-of-pocket costs Opportunity costs Opportunity costs Decision Making Decision Making Accepting Additional Business...
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Web Chapter 25 Section 2 - Capital Budgeting and Capital...

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