n addition to an incremental analysis, qualitative factors should be included in an business situation analysis. 1. A diversified food company is considering the closing of its condiment division. What qualitative factors should be considered before discontinuing a division or product line? 2. An automobile manufacturer has decided to allow outside suppliers to bid on all parts necessary to make its vehicles. What qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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n addition to an incremental analysis, qualitative factors should be included in an business situation analysis.
1. A diversified food company is considering the closing of its condiment division. What qualitative factors should be considered before
discontinuing a division or product line?
2. An automobile manufacturer has decided to allow outside suppliers to bid on all parts necessary to make its vehicles. What qualitative factors
should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?
Transcribed Image Text:n addition to an incremental analysis, qualitative factors should be included in an business situation analysis. 1. A diversified food company is considering the closing of its condiment division. What qualitative factors should be considered before discontinuing a division or product line? 2. An automobile manufacturer has decided to allow outside suppliers to bid on all parts necessary to make its vehicles. What qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?
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