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Short-run decision making

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Reference no: EM133047371

Incremental analysis is very useful for comparisons with car purchases.

Please copy and paste the weblink below to your internet browser and watch the YouTube video. Who can tell me what decisions Navistar was considering? Tell me what you learned in paragraph form (not just answering the specific questions in bullet form) that addresses some of the questions further below.

YouTube Video: EXPERIENCE ACCOUNTING VIDEOS Title14 Short-Run Decision Making: Relevant Costing Make or Buy

Questions:

  • What was their short run decision making dilemma?
  • Did Navistar have to consider expanding the existing capacity at their plant?
  • What kind of one time and ongoing costs were considered in the decision for the "Make" decision?
  • What kind of one time and ongoing costs were considered in the decision for the "Buy" or "Outsource" decision?
  • What obstacles concerning employees did Navistar face when considering outsourcing?
  • What was the final decision?
  • How much are they saving per year?

Reference no: EM133047371

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