The cost model generates information about the consumption of resources and their costs; however, decision
makers must be knowledgeable about the appropriate concepts when using the information. Resources and
managerial objectives are highly interdependent in a model, and countless qualitative factors can change and
have an impact on their costs. The concepts governing information use fall into two groups:
1. Those primarily relevant to analysis (avoidability and divisibility).
2. Those primarily relevant to decision making (interdependence and interchangeability).