Which of the Following Statements Is True of Decision Making

question 35

Multiple Choice

Which of the following statements is true of decision making?

• A) If a given event is inevitable, a decision need not be made.
• B) Decisions should never contain an element of uncertainty.
• C) The possibility of doing nothing is not an alternative in the decision making process.
• D) A decision is made only when there is a single solution to a problem.

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Definitions:

Variable Period Cost

Costs that vary with the level of production output or sales and are incurred during a specific accounting period, like direct materials and variable manufacturing overhead.

Delivery Charges

Fees associated with the transport and delivery of goods from the seller to the buyer.

Fixed Product Cost

Costs associated with a product that do not vary with the level of output, such as rent, depreciation, and salaries of permanent staff.

Materials Purchased

The total cost or quantity of raw materials bought by a company for use in production processes.