Managers Should Generally Consider Opportunity Costs in Both "Keep or Drop

question 77

Multiple Choice

Managers should generally consider opportunity costs in both "keep or drop" and "make or buy" decisions. Which of the following is an opportunity cost they should consider in both situations?

• A) Avoidable fixed costs
• B) Benefits from alternate uses of released capacity
• C) Depreciation on new machinery
• D) Market share

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Definitions:

Sales Representative

An individual who sells products or services on behalf of a company, often directly to customers or businesses.

Decoding

involves interpreting and understanding the meaning of a message that has been communicated, translating symbols, signs, or codes into understandable information.

Abstract Thoughts

The process of thinking about concepts and ideas that are not physically or concretely present but involve complex reasoning or imagination.

Personal Feelings

Refer to an individual's private emotional states or responses, which can influence their behavior and decision-making.