Multiple Choice
Which of the following is not a short-term decision that is a reaction to excess capacity?
A) Management makes the decision to emphasize sales in a particular market to boost poor sales.
B) Management makes the decision to issue a rebate, offering customers a rebate of $0.50 for every widget sold, because inventory is too large.
C) Management makes the decision to close a plant because of increased competition.
D) Management accepts a special order at a reduced selling price since the order's relevant costs will be less than the special order's sales price.
E) All of the above are short-term decisions that are reactions to excess capacity.
Correct Answer:

Verified
Correct Answer:
Verified
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