Review Question: 19.

4
Tactical decisions actually rarely need large or long-term economic obligations, and they
may be adjusted or reverted if better opportunities present themselves. Tactical actions
could impose immediate impact, although they are uncertain to have long-term
consequences. The analysis of cumulative income and expenditures is commonly used to aid
in tactical decision-making. Long-term choices are usually highly substantial and include
significant expansions or reductions in ability resource management. They're difficult to
undo, and most frequently depend on "time-value-of-money" evaluations.
It's useful to distinguish among both "tactical and long-term decisions" since they have
distinct operations effects as well as the emphasis of its study.
Exercise: 19.24
1. The relevant cost of the theolite to be utilized in the customized request is the $29
000 sales worth that the firm will forego if the chemical is employed. 
2.
(a) sales value $29,000

(b) $32 000 carrying amount (8000 kg  $4 per kg): irrelevant, since this is a sunk cost.

(c) $38 400 current purchase price (8000 kg  $4.80 per kg): irrelevant, since the company
will not be buying any theolite.
Review Question: 20.17
Short-term product mix choices entail briefly modifying the product range due to a resource
restriction or exceptional client needs.
In cases when there is a scarcity of resources, a choice must be taken focused on increased
profits through utilizing the limited resource. This includes figuring out how much each
limited resource contributes.
Spare capacity due to irregular client needs can exist for a short time, as well as the choice
to use it for a one-off special request may be dependent on surpassing the added cost of
manufacturing.