Managerial decision makers must often consider non-economic factors as well.For example,when considering whether to outsource to another country,in addition to considering the cost of that decision,managerial accountants with an emphasis on sustainability should consider the human capital impact as well.This represents sustainability within a:
A)make-or-buy decision.
B)keep-or-drop decision.
C)sell-or-process further decision.
D)special-order decision.

Question

Quizplus · Accepted Answer

Sustainability is concerned with balancing economic, social, and environmental factors. In this scenario, considering the human capital impact of outsourcing to another country is a social factor that should be taken into account. This decision falls under a make-or-buy decision, as the company must decide whether to make the product in-house or to outsource it. Therefore, the best choice is A.

Managerial Decision Makers Must Often Consider Non-Economic Factors as Well