Which of the following is one of the keys to short-term business decision-making?

Question

Quizplus · Accepted Answer

Short-term business decision-making should focus on relevant costs, which are the costs that differ between two alternatives, and the contribution margin approach should be used to analyze the impact of the decision on the company's profitability. Sunk costs (which are costs that have already been incurred and cannot be recovered) should be ignored, and qualitative data should be complemented with quantitative data, including future cash flows. Costs that do not change under two alternatives and historic costs are not relevant for short-term decision-making.

Which of the Following Is One of the Keys to Short-Term