Question

Which of the following best explains the difference between short-term and
long-term planning?
O
A. Short-term planning seeks to reduce discretionary spending while
long-term planning seeks to reduce flexible expenses.
O
B. Short-term planning takes care of regular expenses in the near
future while long-term planning involves saving for large
purchases further in the future.
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C. Short-term planning involves only small amounts of money while
long-term planning involves large sums of money.
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D. Short-term planning involves setting monetary goals while long-
term planning involves setting non-monetary goals.

Answer 1

Answer:

D) Short-term planning involves setting monetary goals while long-  term planning involves setting non-monetary goals.

Explanation:

In short-term planning, a company's executives can deal with monetary issues by cutting or increasing variable expenses, such as hiring or firing employees, purchasing inputs and cutting discretionary (flexible) expenses. In the long run, executives can deal with nonmonetary goals, such as increasing or decreasing the size of a factory. In this case, it is the management of expenses that are rigid (not flexible) in the short term, which depend on long-term planning to be executed.