Which of the Following Is the Most Important Key to Short-Term

question 97

Multiple Choice

Which of the following is the most important key to short-term business decision making?

• A)focus on costs which do not change under two alternatives and on historic costs
• B)focus on qualitative data only and ignore future cash flows
• C)focus on sunk costs and quantitative data
• D)focus on relevant costs and use the contribution margin approach

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Definitions:

Line Managers

Are those directly responsible for creating goods and services.

General Managers

Managers responsible for overseeing the day-to-day operations of a business or a specific department within an organization.

Specialized Subunits

Divisions or departments within an organization that focus on a specific type of work, expertise, or service.

Legal Enforcement Arm

Agencies or departments responsible for ensuring compliance with laws and regulations, and for enforcing penalties for violations.