The Major Problem with Relevant Cost Determination Is That It

question 14

Multiple Choice

The major problem with relevant cost determination is that it fails to recognize the:

• A) Impact of variable costs in the long run.
• B) Long-term nature of most product-related decisions.
• C) "Sunk" nature of most fixed product costs.
• D) Short-term nature of most product-related decisions.
• E) Need to calculate costs more precisely.

---

Definitions:

Dependent Variable

The factor in research that is likely to shift following modifications to the independent variable.

Independent Variable

An independent variable is one that is manipulated or categorised to observe its effect on a dependent variable.

New Yorkers

Residents or natives of New York City or the state of New York.

Dependent Variable

The variable in an experiment or study that is expected to change as a result of manipulations to the independent variable.