Which of the Following Statements Is True When Making a Decision

question 57

Multiple Choice

Which of the following statements is true when making a decision between two alternatives?

• A)Variable costs may not be relevant when the decision alternatives have the same activity levels.
• B)Variable costs are not relevant when the decision alternatives have different activity levels.
• C)Sunk costs are always relevant.
• D)Fixed costs are never relevant.

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Definitions:

Total Commitment

A state or condition of being fully dedicated or completely loyal to a cause, activity, or the duties and responsibilities of a role or position.

Labour Cost Savings

Reductions achieved in the expenses related to employing labor, often through efficiencies, negotiations, or changes in work practices, without compromising productivity.

Short-term Incentives

Compensation methods designed to provide immediate rewards for performance, typically in the form of bonuses, to motivate employees over a short period.

Stock Bonus Plan

A compensation program that provides employees with shares of the company's stock as a part of their remuneration.