This course is about managerial decision-making. Business managers are increasingly expected to identify problems, acquire and analyze relevant information, and critically assess the implications of decisions. In this course, we learn to both apply and evaluate theories for measuring and evaluating firms' profitability given their strategic positioning. The course goes in-depth into methods for costing and pricing. For cost analyses, we focus on estimating relevant costs where the design and use of activity-based costing (ABC) systems are central, as well as the handling of capacity and capital costs. For pricing analyses, we discuss different approaches to strategic pricing (cost-based, customer-based, and market-based) and view these in light of new technological innovations. Throughout the course, we discuss the human factor and insights from behavioral research relevant to managerial decision-making.