- differential revenue
A difference in revenue between any two alternatives is known as
- Because differential costs and differential revenues are the only inputs that are relevant to decision making, they are also often referred to as
relevant costs and relevant benefits.
- An ________ is a cost that can be eliminated by choosing one alternative over another.
avoidable cost
- is a cost that has already been incurred and cannot be avoided regardless of what a manager decides to do
sunk cost
- is the potential benefit that is given up when one alternative is selected over another
opportunity cost
- When a company is involved in more than one activity in the entire value chain, it is
vertically integrated.
- A decision to carry out one of the activities in the value chain internally, rather than to buy externally from a supplier, is called a
make or buy decision.
- A __________ is a one-time order that is not considered part of the company's normal ongoing business
special order
- A ____________ is anything that prevents you from getting more of what you want
constraint
- The constraint, or ________________, in the NHS system is determined by the step that limits total output because it has the smallest capacity—in this case surgery
bottleneck