Short-term Decision-making

  • Ruth A. Schmidt
  • Helen Wright


When you have worked through this chapter you should be able to
  • Explain and illustrate by giving an example the difference between the long-term and short-term aspects of decision-making

  • Give three examples of typical short-term decisions

  • Define the term MARGINAL COST

  • Explain what is meant by the relevant range

  • Explain what is meant by an incremental volume

  • Define the term differential cost

  • Define the term SUNK COST

  • Define the term common cost

  • Define the term opportunity cost

  • In the context of an example, identify the costs which are relevant in making a short-term decision


Trust Fund Differential Cost Relevant Cost Common Cost Health Food Shop 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Ruth A. Schmidt and Helen Wright 1996

Authors and Affiliations

  • Ruth A. Schmidt
  • Helen Wright

There are no affiliations available

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