A Decision Is Called an Operational Decision If It ________

question 37

Multiple Choice

A decision is called an operational decision if it ________.

• A) is made by an individual rather than a group
• B) is made by managers
• C) involves allocation of resources
• D) concerns day-to-day activities

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Definitions:

Variable Costs

Costs that vary in total directly and proportionately with changes in the activity level or volume of output.

Financial Advantage

The benefit or edge that a business or individual has that allows them to generate more income or wealth compared to others.

Fixed Manufacturing Overhead

Regular, consistent expenses that do not vary with production levels, such as salaries of supervisors and rent for factory facilities.

Financial Advantage

The benefit obtained from making specific financial decisions or investments, often measured in terms of profit, savings, or a more favorable financial position.