When making short-term decisions,it is important that decision makers are aware that the TOC approach tends to lend itself more to short-term decisions while ABC often has long-term implications.

Question

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The Theory of Constraints (TOC) approach often focuses on identifying and addressing bottlenecks or constraints in the short-term to improve overall efficiency and productivity. On the other hand, Activity-Based Costing (ABC) involves a more detailed and comprehensive analysis of costs, which can have long-term implications on pricing decisions and product/service offerings. Therefore, decision makers need to be aware of the different implications and time frames when using each approach.

When Making Short-Term Decisions,it Is Important That Decision Makers Are