
1.
To explain: The qualitative reasons behind discontinuance of product GS.
2.
To explain: The factors that would be relevant to a restaurant that is considering whether to make its own dinner rolls or to purchase dinner rolls from a local bakery.
3.
That how would outsourcing change a company’s cost structure.
To conclude: The change in cost structure help or harm a company’s competitive position by outsourcing.
4.
To explain: Opportunity cost and list possible opportunity costs associated with a make-or-buy decision.
5.
To explain: The undesirable result that can arise from allocating common fixed costs to product lines.
6.
The reason that could make a manager be justified in ignoring fixed costs when making a decision about a special order.
To explain: The situation when would fixed costs be relevant when making a decision about a special order
7.
The difference between segment margin and contribution margin.
To explain: The condition when segment margin and contribution margin is used.
8.
To explain: That if joint costs affect a sell as is or process further decision with reasons.
9.
That how “make-or-buy” concepts be applied to decisions at a service organization.
To explain: The types of make-or-buy decisions that might a service organization face.
10.
The constraints for company O, which builds outdoor furniture using a variety of woods and plastics.
To explain: At least four possible constraints at company O.
11.
To explain: The carbon offset and carbon footprint. Interest of company in selling carbon offset.
12.
To explain: The quantitative and qualitative factors for outsourcing its services.

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Chapter 8 Solutions
Managerial Accounting, Student Value Edition (5th Edition)
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