Which of the Following Statements Regarding Differential Costs Is (Are)false

question 61

Multiple Choice

Which of the following statements regarding differential costs is (are) false? (A) The full cost fallacy occurs when a decision-maker fails to include fixed manufacturing overhead in the product's cost.
(B) When deciding whether or not to accept a special order,a decision-maker should focus on differential costs instead of full costs.

• A)Only A.
• B)Only B.
• C)Neither A nor B is false.
• D)Both A and B are true.

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Definitions:

Salivate

The production and release of saliva from the salivary glands in the mouth, often in response to the sight, smell, or taste of food.

Conditioned

The process by which an organism learns to associate two stimuli, leading to changes in behavior.

Shaping

A method of training by which successive approximations toward a desired behavior are reinforced.

Desired Response

The preferred or intended outcome of a particular behavior or action.