Which of the Following Is a Short-Term Decision That Is

question 30

Short Answer

Which of the following is a short-term decision that is a reaction to excess demand? a. Management makes the decision to emphasize sales in a certain market to boost poor sales.
B) Management makes the decision to close a plant because of increased competition.
C) Management makes the decision to buy parts rather than make them after calculating a positive opportunity cost for capacity.
D) Management makes the decision to make parts rather than buy them after calculating a positive opportunity cost for capacity.
E) All of the above a short-term decisions that are reactions to excess demand.

Identify and explain the variances in overhead, labor, and materials costs.

Recognize the role and responsibility of different departments in variance analysis and standard cost setting.

Differentiate between various types of standards such as ideal, normal, and tight standards.

Understand how standard costs contribute to management planning, control, and decision making.

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Definitions:

Undue Influence

An improper or unacceptable exertion of pressure or influence on someone, which may affect the decisions and actions of that person.

Duress

The use of force, false imprisonment, threats, or psychological pressure to compel someone to act against their will or interest.

Rescission

Rescission is the act of invalidating a contract, returning the parties involved to their positions prior to the agreement, under circumstances such as misrepresentation or fraud.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading another to enter into a contract.