Identify a Key Difference Between Managerial Decisions and Operational Decisions

question 98

Multiple Choice

Identify a key difference between managerial decisions and operational decisions.

• A) Managerial decisions concern the allocation of resources, whereas operational decisions concern day-to-day activities
• B) Managerial decisions are corporate decisions, whereas operational decisions concern the utilization of resources.
• C) Managerial decisions deal with the allocation of resources, whereas operational decisions deal with the utilization of resources.
• D) Operational decisions have broad scope, whereas the scope of managerial decisions is limited by day-to-day activities.

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Definitions:

R&D Expenditures

Refers to spending on research and development activities by governments, businesses, or other organizations to innovate or improve products and services.

Economies of Scale

The economic benefits companies achieve through expanding their scale of activity, as the cost for every unit of output falls with the growth in scale.

Income

The financial earnings received by an individual or entity, typically measured over a certain period of time.

Utility-Maximizing

A principle in economics wherein individuals or entities make choices that result in the highest level of satisfaction.