differential revenue Because differential costs and differential revenues are the only inputs that are relevant to decision making, they are also often referred to as An ________ is a cost that can be eliminated by choosing one alternative over another

1. differential revenue

A difference in revenue between any two alternatives is known as

2. 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.

3. An ________ is a cost that can be eliminated by choosing one alternative over another.

avoidable cost

4. is a cost that has already been incurred and cannot be avoided regardless of what a manager decides to do

sunk cost

5. is the potential benefit that is given up when one alternative is selected over another

opportunity cost

6. When a company is involved in more than one activity in the entire value chain, it is

vertically integrated.

7. 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.

8. A __________ is a one-time order that is not considered part of the company's normal ongoing business

special order

9. A ____________ is anything that prevents you from getting more of what you want

constraint

10. 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