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Chapter Objectives
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After studying Chapter 12, you should be able to:

LO 12-1

Identify relevant and irrelevant costs and benefits in a decision.

LO 12-2

Prepare an analysis showing whether a product line or other business segment should be added or dropped.

LO 12-3

Prepare a make or buy analysis.

LO 12-4

Prepare an analysis showing whether a special order should be accepted.

LO 12-5

Determine the most profitable use of a constrained resource.

LO 12-6

Determine the value of obtaining more of the constrained resource.

LO 12-7

Prepare an analysis showing whether joint products should be sold at the split-off point or processed further.








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