Consider the Following Costs and Decision-Making Situations

question 85

Multiple Choice

Consider the following costs and decision-making situations:
I. The cost of existing inventory, in a keep vs. disposal decision.
II. The cost of special electrical wiring, in an equipment acquisition decision.
III. The salary of a supervisor who will be transferred elsewhere in the organization, in a department-closure decision.
Which of the above costs is (are) relevant to the decision situation noted?

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) II and III.

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Definitions:

Two Raters

A method involving two independent evaluators assessing the same performance or work to improve the objectivity and reliability of the evaluation.

Reliability And Accuracy

The consistency and correctness of a test's or measurement's outcomes over repeated applications.

Observation

The action or process of closely monitoring or noting the behavior or characteristics of individuals or phenomena.