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1. If managers' performance is evaluated solely on the current year's profitability, managers are likely to make decisions that lead to the company's long-term profitability.

1. If managers' performance is evaluated solely on the current year's profitability, managers are likely to make decisions that lead to the company's long-term profitability.

True or False

2. A company that is subject to the effect of a scarce resource should concentrate on providing products or services that give the greatest contribution margin per unit of product or service.

True or False

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