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Give examples of nonroutine operating decisions

Nonroutine operating decisions are not made on a regular schedule. Examples of this
includes decisions whether to accept or reject a customer’s special order, make or buy a
product, keep or eliminate business segments and insource or outscource a business activity.
This also includes decisions about drop or continue a division of the business, sell-as-is or
process further a product, continue or shutdown an operation, as well as maximum or minimum
bid price , maximization of resources, sell now or later, retain or replace an old asset and sale a
scrap or rework the product. All of this are non routine operation in which decision is essential
for profitability of the business.

5. What are the relevant costs involve in various nonroutine operating decisions and how
will it be used in quantitative analysis?
Relevant costs that are involved in various nonroutine operating decisions includes
incremental cost, shutdown cost, incremental cost of storage, cost of warehousing, scrap or
rework, indifference point, incremental sales
Restart up cost, Advantage of continuing operation If higher sales continue It is use in
quantitative analysis in order to decide the best decision such if

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