Which of the Following Is a True Statement About Costs

question 46

Multiple Choice

Which of the following is a true statement about costs in incremental analysis?

• A)Variable costs are always relevant.
• B)Fixed costs are never relevant.
• C)Fixed costs are always relevant.
• D)Both variable and fixed costs can be relevant.

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Definitions:

Labor Costs

The total sum of all wages, benefits, and taxes that an employer incurs in compensation for the work performed by employees.

Strategic Decision Making

The process of making choices by identifying priorities, alternatives, and potential impacts, often under conditions of uncertainty, to achieve strategic goals.

Top Managers

Senior executives who are responsible for the overall direction and success of the entire organization.

Normative Decision Model

A framework that suggests leaders determine the appropriate amount of employee participation based on specific situational variables.