Short-term decision making differs from long-term decision making because:
A)Short-term decision making assumes capacity is fixed.
B)Short-term decision making assumes that variable costs are fixed.
C)Short-term decision making assumes selling prices are fixed.
D)Short-term decision making assumes the accounting data is fixed.

Question

Quizplus · Accepted Answer

Short-term decision making assumes capacity is fixed, meaning that the resources available to the organization are assumed to be constant, regardless of the decision made. In long-term decision making, however, capacity can be adjusted based on the needs of the organization, allowing for more flexibility in decision making. Variables such as costs, prices, and accounting data may also change over time, affecting long-term decisions in a way that they do not affect short-term ones.

Short-Term Decision Making Differs from Long-Term Decision Making Because