Which of the Following Statements Is False

question 61

Multiple Choice

Which of the following statements is false?

• A)Decisions help us accomplish goals.
• B)When determining their goals, individuals generally agree on the factors they consider and the importance they attach to the various factors.
• C)Some decisions involve a small number of options.
• D)For most businesses, identifying the set of options is one of the more important tasks of management.
• E)Value is the contribution of an option to the decision maker's goals.

---

Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, providing a basis for operational planning.

Operating Profit

Earnings before interest and taxes (EBIT), representing the profit a company makes from its operations after subtracting operating expenses from revenue.

Sales Mix

The proportion of different products or services that make up the total sales of a company.

Unit Contribution Margin

The amount each unit sold contributes to covering fixed costs and generating profit, calculated by subtracting variable costs per unit from the selling price per unit.