Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile?

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Part 1

A.

They do not tell how the decision affects the firm's reported profits from an accounting perspective.

B.

These earnings are not actual cash flows.

C.

They do not show how the firm's earnings are expected to change as the result of a particular decision.

D.

They are not easily predicted from historical financial statements of a firm and its competitors.