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 long run decision?
A) $1 million renovation of a building at the Hutchinson Air Base Industrial Tract and $400,000 in new equipment purchases
B) $1 million renovation of a building at the Hutchinson Air Base Industrial Tract
C) $400,000 in new equipment purchases
D) Triple its Yoder work force

Question

Quizplus · Accepted Answer

The $1 million renovation of a building at the Hutchinson Air Base Industrial Tract and $400,000 in new equipment purchases are long-run decisions because they will have a long-term impact on the company's operations.

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