Managers Should Consider Both the Potential Quantitative and Qualitative Effects

question 135

True/False

Managers should consider both the potential quantitative and qualitative effects of their decisions.

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Definitions:

Differential Cost

The difference in cost between two alternative decisions or scenarios.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered and should not affect future business decisions.

Net Book Value

The value at which an asset is carried on a balance sheet, essentially the cost of the asset minus accumulated depreciation.

Equipment Rental

The process of leasing machinery or equipment for a specific period instead of purchasing it outright.