Which of the following are the two most important keys to short-term business decision-making?

Question

Quizplus · Accepted Answer

Short-term business decision-making requires focusing on future expected data and using the contribution margin approach. This approach allows for the evaluation of the potential profitability of each alternative and choosing the one with higher expected contribution margin. It takes into account both variable costs and revenues, providing a clear picture of the financial impact of each decision. Ignoring future cash flows or focusing on sunk costs or historic costs can result in poor decisions and negatively impact the business.

Which of the Following Are the Two Most Important Keys