The Relevance of a Particular Cost to a Decision Is

question 42

Multiple Choice

The relevance of a particular cost to a decision is determined by the: (CMA adapted)

• A) riskiness of the decision.
• B) number of decision variables.
• C) amount of the cost.
• D) potential effect on the decision.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices within a given time period.

Supply

The total amount of a product or service that is available to consumers at a specific price over a given period.

Economy Moves

Refers to the overall changes or shifts in economic activity, growth, and health within a particular economy over time.

Ceteris Paribus

A Latin phrase meaning "other things being equal," used in economics to isolate the effect of one variable by holding others constant.