Publications
Publications
- January 2006
Alternative Choice Decisions Analysis
By: David F. Hawkins, V.G. Narayanan, Jacob Cohen and Michele Jurgens
Abstract
Shows how managers use information on costs and revenues to decide between possible alternative courses of action. Presents two case examples of differential cost analysis. The first, a make or buy decision, examines two alternatives in which only costs vary. The second presents a situation in which both revenues (changes in price and volume) and costs (including fixed costs) change. Both analyses allow students to act as managers and conclude which of several alternatives yields the greatest differential profits.
Keywords
Cost; Profit; Revenue; Information; Management Analysis, Tools, and Techniques; Problems and Challenges; Conflict and Resolution
Citation
"Alternative Choice Decisions Analysis." Harvard Business School Tutorial 105-706, January 2006.