Which of the Following Is a Problem Associated with Using

question 23

Multiple Choice

Which of the following is a problem associated with using the enumeration method in decision making?

• A)It is not applicable to problem with a small number of possible choices.
• B)As the number of choices increase,the cost of using this method increases.
• C)It cannot be used in problems where the benefits and costs are quantifiable.
• D)It is an objective method of decision making.
• E)It shows decisions that are probable,but not certain.

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Definitions:

Fixed Costs

Regular expenses that an entity incurs, which are not affected by changes in business activity levels, such as lease payments and insurance premiums, essential for financial planning.

Machine Setup Costs

Expenses incurred to prepare machinery for production, including calibration, cleaning, and testing.

Batch Level

Refers to the classification in cost accounting that associates costs with specific batches of goods or services rather than with individual units or processes.

Unit-level Costs

Costs that are incurred for every unit produced, directly proportional to the production volume.