"Worth Its Cost" Refers to Information

question 47

Multiple Choice

"Worth its cost" refers to information

• A) that is produced in time for its intended use.
• B) that is good for the purpose for which it is generated.
• C) that is collected in a low-cost manner.
• D) that has an appropriate relationship between its cost and its value.
• E) that is useful to both the context and the subject at hand.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, contributing to covering fixed costs and generating profit.

Machine Hours

A measure of production time, corresponding to the total hours that machines are in operation.

Controllable

Costs or factors that can be adjusted or influenced by the actions of a company or individual within a particular timeframe.

Direct Materials

Essential substances or components specifically allocated to the creation of a product, identifiable in the final product.