Response to Lisdrey Cires

I have read you post and it looks well written and seems you have understood every point. As we have learned previously from definition given by Noreen, Brewer and Garrison that differential analysis relates to the difference of cost between two alternatives and making relevant decisions. This cost is generally utilized in business decisions or any vital decision where two different project plans involves different set of costing. Here we have learnt that business must at first analyze the both set of projects and its related benefits. After that the main task is to analyze the possible cost related to it. Based upon both the analysis, decision will be taken which will provide more return & benefit, and less risk & loss. For business owners the return will be related to increase in their revenue system (Noreen, Brewer & Garrison, 2011). The cost will be related to picking cost as well and the most convincing part regarding the decision making as per Noreen, Brewer & Garrison is cost and profit associated with the project. There are different techniques which signifies clearly that before any business organization opts for any specific option or project then all the possible alternatives must be properly executed at first and then selection must be done (Danilov & Turuntaev, 2016).

Responses to Felicia Stanley

The definition and example are both to the point and very logically stated what differential analysis functions and where it can be utilized. Differential analysis as we have learned is basically utilized as a tool by the managers when they are supposed to take decision regarding any project. Every project contains some associated cost in it and it is important to analyze it before the final decision is made (Liu et al., 2014). However, management must also look for other non-financial factors as well while comparison like responsibility of the organization, role played by the employees, their wellness, relationship with shareholders and customers, and etc. many factors contribute into the decision making. When possible alternatives are considered then their opportunity cost must be analyzed properly before the decision. Every possible alternatives execution will help the management to decide which plan is better for them and will provide them benefit. Not every decision is beneficial for every situation so it can be said that this differential analysis process is an ongoing process and hence management team must focus into adopting the best possible decision for their project and strategy. Understanding of different technique is important for the adoption and application of any specific decision (Ma et al., 2014, July).

References

Danilov, V. G., & Turuntaev, I. S. (2016). Interactive educational system based on generative approach, and the problem of answer checking. In Smart Education and e-Learning 2016 (pp. 527-537). Springer, Cham.

Karadzhov, G., Nakov, P., Màrquez, L., Barrón-Cedeño, A., & Koychev, I. (2017). Fully automated fact checking using external sources. arXiv preprint arXiv:1710.00341.

Liu, W., He, Y. P., Cao, J. Q., Liu, S. T., & Chen, Y. Y. (2014). Application Analysis on Drawing Device of Differential Thread. In Applied Mechanics and Materials (Vol. 614, pp. 565-568). Trans Tech Publications Ltd.

Ma, L. Q., Liu, R. Z., Meng, F. Y., & Wang, P. Y. (2014, July). An S-band defferential power divider based on Defected Ground Structure. In Proceedings of 2014 3rd Asia-Pacific Conference on Antennas and Propagation (pp. 1412-1414). IEEE.

Noreen, E. W., Brewer, P. C., & Garrison, R. H. (2011). Managerial accounting for managers. Includes index.