In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas. The company will also add some $400,000 in new equipment and triple its Yoder work force. Which of Precision Pattern Interiors' decisions is a short run decision?
A) Triple its Yoder work force
B) $1 million renovation of a building at the Hutchinson Air Base Industrial Tract
C) $400,000 in new equipment purchases
D) All of these decisions are short run decisions.

Question

Quizplus · Accepted Answer

Triple its Yoder work force is a short run decision because it involves increasing the labor force in the immediate period without any significant changes in the production process. The $1 million renovation and $400,000 in new equipment purchases are long-term investments that will have an impact on the company's productivity and efficiency in the long run.

In 2008, Precision Pattern Interiors, Which Makes High-End Aircraft Interiors