Tuesday 12 November 2019

You are a Vice President of Busy Company, which is considering whether to add a second plant in a

You are a Vice President of Busy Company, which is considering whether to add a second plant in a different state that will make a slightly different variation of their highest-selling product.
- What are types of costs that decision makers at Busy Company may fail to consider when looking at a potential expansion?
- What other expenses might be commonly forgotten when considering the costs of an expansion decision (for example, trash removal, water)?
- Would these expenses make a material difference in the decision?
- What processes might be put in place to assure that these seemingly small expenses are considered when planning an expansion project?

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