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____________________ Decisions Are Short Term and Affect Only Daily Operations;for

question 52

Short Answer

____________________ decisions are short term and affect only daily operations;for example,deciding to change the price of a product to clear it from inventory.


Definitions:

Residual Income

The amount of income that an entity has after all personal debts and expenses, including the cost of capital, have been paid.

Acceptable Return

The minimum profit or benefit expected by an investor for the risk taken on an investment.

Income from Operations

Financial performance metric that shows earnings from normal business activities, excluding effects of interest and taxes.

Transfer Price

The price at which goods and services are sold between subdivisions, affiliates, or subsidiaries within the same organization.

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