It is important to keep the time horizon in mind when making decisions because:
A)Short term decisions are generally more costly than long term decisions.
B)We always want to identify choices quickly.
C)When making future decisions, costs incurred in the past must be considered.
D)The horizon affects whether a cost or benefit is controllable for the decision.
E)All of the above are important.

Question

Quizplus · Accepted Answer

The time horizon is crucial in decision-making because it influences whether certain costs or benefits can be controlled or altered in the context of the decision at hand. Short-term decisions might not always be more costly than long-term ones, and not all decisions require quick identification. Additionally, in decision-making, sunk costs (costs incurred in the past) are typically considered irrelevant since they cannot be recovered or changed.

It Is Important to Keep the Time Horizon in Mind