As this discussion among the managers of Classic brass illustrates, caution should be exercised before taking action based on an ABC analysis such as the one shown in Exhibits 7-10 and 7-11. The product and customer margins computed in these exhibits are a useful starting point for further analysis, but managers need to know what costs are really affected before taking any action such as dropping a product or customer or changing the prices of products or services. Appendix 7A shows how an action analysis report can be constructed to help managers make such decisions. An action analysis report provides more detail about costs and how they might adjust to changes in activity than the ABC analysis presented in exhibits 7-10 and 7-11.