In this module (Module 11: Differential Analysis), we discussed several common business decisions such as whether to accept a special order. In each case, a manager should make the decision attempting to maximize what outcome? One decision we discussed was whether to make or buy a component part for our production. Discuss the factors you would need to evaluate in order to make a proper decision as to whether a car manufacturer should make their own tires or purchase them from Goodyear.
Differentiate between the following types of costs: differential cost, sunk cost, opportunity cost.