11/25 Class Flashcards
1
Q
adding/dropping segments
A
we need to find the CM to determine if it is a negative contributor
2
Q
decision rule
A
the only time we eliminate a segment is if we could cover the fixed costs associated with this segment
3
Q
sunk costs
A
costs that are not affected by our decision
4
Q
make or buy
A
we need to find the unit costs to see which is cheaper
5
Q
joint products
A
two or more products produced form a common input
6
Q
split off point
A
point where the products split off from the input
