$7\mathrm{.}1$ Decision$-$Making and Incremental Analysis

Gwen is the CEO of a firm and Paul is the CFO. They are arguing about whether to shut down an unprofitable division. Gwen is worried that doing so will damage the firm's reputation, but Paul insists that the cost savings involved are too good to pass up$.$ How do Gwen's concerns differ from Paul's concerns?

Gwen is considering qualitative factors, while Paul is considering quantitative factors.

Gwen is considering unchangeable costs, while Paul is considering changeable costs.

Gwen is considering negative opportunity costs, while Paul is considering positive opportunity costs.

Gwen is considering sunk costs, while Paul is considering relevant costs.

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