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Differential Analysis



Managers have to make many decisions about how to run their companies. These decisions can include determining which products and services to provide, where to buy raw materials and component parts, how to price their offerings, how to distribute their goods, and who to hire and fire. To help make sure they are making smart choices, business owners and managers often analyze relevant data to guide how they make their decisions. They use this differential analysis as they focus on key decisions, such as how much to spend, which product lines to create, and whether to accept special orders.

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