When Using Relevant Cost Analysis, It Is a Common Mistake

question 39

Multiple Choice

When using relevant cost analysis, it is a common mistake for untrained managers to include in their analysis all the following except:

• A) Sunk costs.
• B) Allocated fixed costs.
• C) Average fixed costs.
• D) Unit variable costs.
• E) Total fixed costs.

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Definitions:

Cognitive Development

The process of growth and change in intellectual capabilities that influence a person’s behavior and learning abilities.

Psychosocial Development

The process of personality and emotional growth that occurs through interactions with others across the lifespan.

Transitive Inference

A form of logical reasoning that allows one to deduce a relation between two items based on their relations to a third item.

Seriation

The cognitive ability to arrange objects in order by size, location, or another attribute, a skill that develops in early childhood.