If a Decision Maker Uses Marginal Analysis, Then the Relevant

question 190

Multiple Choice

If a decision maker uses marginal analysis, then the relevant costs are the

• A)full costs of a particular activity or product.
• B)fixed costs that do not vary with the extra activity or output.
• C)profits obtained on the activity or product.
• D)average costs for a particular activity or product.
• E)additional costs of a particular activity or product.

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Definitions:

Production System

A system that encompasses all activities, resources, and processes involved in the production of goods or services.

Toyota Production System

A highly efficient and integrated approach to production and manufacturing, emphasizing waste reduction, continuous improvement, and customer focus.

Built-in

Embedded or integrated directly into something, not separate or removable.

Automatic Tests

Tests that are executed by software tools which automatically perform a set of instructions to validate the behaviour or performance of an application or system.