When There Is Idle Capacity, Which Costs Are Most Likely

question 20

Multiple Choice

When there is idle capacity, which costs are most likely to be IRRELEVANT?

• A) Incremental costs
• B) Fixed costs
• C) Variable costs
• D) Opportunity costs

---

Definitions:

Projective Tests

Psychological assessments that use ambiguous stimuli to elicit responses that are thought to reveal a person's unconscious thoughts and feelings.

Validity

The extent to which a test or instrument measures what it claims to measure accurately.

Expensive

Something that requires a high cost or a large amount of resources to obtain.

Factor Analysis

A statistical technique used to identify underlying variables, or factors, that explain the pattern of correlations among various measures.