Managerial decision makers must often consider non-economic factors as well.For example,when considering whether to eliminate a product line,managerial accountants with an emphasis on sustainability should consider the employee job loss implications 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

A keep-or-drop decision involves deciding whether to continue producing a product or service or to discontinue it. In this scenario, the decision to eliminate a product line may have a significant impact on the employees working on that line. Therefore, considering employee job loss is an example of sustainability within a keep-or-drop decision. The other decisions listed (make-or-buy, sell-or-process further, special-order) do not necessarily involve employee job loss implications.

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