When Assessing the Appropriateness of a Decision Option,managers Should

question 47

Multiple Choice

When assessing the appropriateness of a decision option,managers should

• A)consider its impact on the organization as a whole.
• B)only think narrowly about the one department most affected by the decision.
• C)ask their friends which option they would choose.
• D)choose the option that partially addresses the problem.
• E)go with his or her gut regarding which option is best.

Distinguish between sunk costs and relevant costs for decision-making.

Apply the concept of opportunity cost accurately in various scenarios.

Recognize the differences between accounting costs and economic costs.

Identify and calculate average, marginal, average fixed, and average variable costs.

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