When Analyzing the Incremental Costs Used to Help Make a Short-Term

question 71

Multiple Choice

When analyzing the incremental costs used to help make a short-term operating decision:

• A)fixed costs are irrelevant
• B)variable costs are irrelevant
• C)both fixed costs and variable costs are relevant
• D)incremental revenues are irrelevant

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Definitions:

Productive

The efficiency and effectiveness with which input resources (like time, labor, and materials) are transformed into outputs (goods or services) that generate value.

Rankings/Comparisons Performance

The assessment of an individual's or organization's performance relative to others based on specific criteria or standards.

Absolute Distance

A measure of the physical space between two points, often determined by a standard unit of length.

Behaviorally Anchored Rating Scales (BARS)

A performance appraisal method that rates behavior in terms of a scale showing specific examples of employee actions that represent various levels of performance.