This document discusses differential cost analysis and decision making alternatives and processes. It outlines several alternatives that differential cost analysis can help with, such as make or buy decisions, continuing or discontinuing a business segment, and utilizing scarce resources. It also describes the typical decision making process, which involves defining the problem, setting criteria, identifying alternatives, evaluating consequences, choosing the best option, and making the decision.

1. DIFFERENTIAL
COST ANALYSIS
by
Dr. Joy Kenneth Sala Biasong
MBA, MPA, MEdSpEd, DSPED, DM-HRMD, Ed.D., Ph.D.

2. Decision Making AlternativesDecision Making Alternatives
 Make or BuyMake or Buy
 Sell or Process FurtherSell or Process Further
 Continue or Discontinue Operating aContinue or Discontinue Operating a
Business SegmentBusiness Segment
 Accept or Reject a Special OrderAccept or Reject a Special Order
 Temporary ShutdownTemporary Shutdown
 Utilization of Scarce ResourcesUtilization of Scarce Resources
 Change in Profit FactorsChange in Profit Factors
( Source: Management Advisory Services by R. Roque)( Source: Management Advisory Services by R. Roque)

3. Decision Making ProcessDecision Making Process
 Defining the problemDefining the problem
 Setting of criteriaSetting of criteria
 Identifying alternativesIdentifying alternatives
 Determination of possibleDetermination of possible
consequences of the alternativesconsequences of the alternatives
 Evaluating the alternativesEvaluating the alternatives
 Choosing the best alternativeChoosing the best alternative
 Make the decisionMake the decision
( Source: Management Advisory Services by R. Roque)( Source: Management Advisory Services by R. Roque)