ACC 202 WORSKSHOP FIVE SHORTTERM DECISIONS HANDOUT FOR 5.5 DROPBOX
Download Short-Term Decisions Handout for 5.5 Dropbox Review the questions below. As you watch the video Short-Term Decisions, take notes and answer the following questions for Dropbox submission:
Question 1. Why is it important to determine which of the fixed costs can be eliminated and when they can be eliminated when making a production decision? 2. What makes a fixed cost irrelevant when making a short-term production decision? 3. When a product has a positive contribution margin, is it ever wise to discontinue production? Why or why not? 4. Discuss how other considerations may be important when making what appear to be short-term production decisions, beyond the variables covered in this video.