Qualitative factors can be difficult to identify because:
A) They are not usually relevant in nonroutine operating decisions
B) They are usually unimportant
C) No set formula assures managers they have considered the important issues
D) They are typically the same as sunk costs

Question

Quizplus · Accepted Answer

Qualitative factors are subjective and cannot be measured numerically. They include factors such as customer satisfaction, employee morale, and brand reputation which can be  difficult to identify and measure. There is no set formula to analyze them and assure that all the important issues have been considered. Therefore, option C is the correct answer. Option A is incorrect because qualitative factors can be relevant in nonroutine operating decisions. Option B is incorrect because qualitative factors can be crucially important in decision-making. Option D is incorrect because qualitative factors are not sunk costs.

Qualitative Factors Can Be Difficult to Identify Because