Most short-term decisions deal with temporary gaps between:
A)A flexible supply of capacity and a fixed demand.
B)The inability to change selling price and the ability to estimate controllable costs.
C)The amount of fixed costs that can be avoided and the contribution margin.
D)The demand of and the supply of available capacity.
E)Company goals and employee goals.

Question

Quizplus · Accepted Answer

Short-term decisions typically deal with matching the demand for a product or service with the available capacity to produce it. Therefore, the most relevant factor is the relationship between the demand and supply of available capacity (option D). Option A refers to a scenario where capacity is flexible, which is not always the case in short-term decision making. Option B and C are less relevant to the question of capacity and demand matching. Option E is somewhat related, but not as directly relevant as option D.

Most Short-Term Decisions Deal with Temporary Gaps Between