Operational Decisions Refer to

question 80

Multiple Choice

Operational decisions refer to

• A) the control of resources and activities over a time period of less than one month.
• B) day-to-day activities.
• C) an understood and accepted method for making decisions.
• D) the allocation and utilization of resources.
• E) broader-scope, organizational issues.

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Definitions:

Profit-Maximizing Firm

A company that operates with the objective of making the highest possible profit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Accounting Profits

The total revenue of a company minus the explicit costs, not including opportunity costs, showing the financial performance.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.