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This document explores key concepts in performance and cost analysis as outlined in Chapters 9 and 10 of ME 2605: Cost Management and Control by Håkan Kullvén. It emphasizes how quantitative factors can influence cash flow and the qualitative differences among various decision-making scenarios. The examples provided, such as special pricing, product mix decisions under constraints, equipment replacement, outsourcing, and discontinuation strategies, illustrate the complexities involved in situational decision-making. Discover how to effectively analyze performance metrics for better decision outcomes.
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Situational DecisionsChapters 9 & 10 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007 Hakan.kullven@indek.kth.se
Special studies • Relevant if: • Quantitative aspects: Makes a difference on cash-flow • Qualitative aspects: Differs between possible decisions
Example 9.1 page 316 1 Special pricing
Example 9.2 page 321 2 Product mix if constraints
Page 323 3 Replacing equipment
Exhibit 9.3 page 327 4 Outsourcing
(Example not in text book) 5 Discontinuation
Next, we… are going to look at another type of decisions, namely regular pricing decisions. We will see how the pricing depends on the companies role in the marketplace Chapters 11 & 12