Which of the Following Costs Are Relevant to Aggregate Operations

question 7

Multiple Choice

Which of the following costs are relevant to aggregate operations planning?

• A) Sunk costs
• B) Transaction costs
• C) Backordering costs
• D) Legal costs
• E) Fixed costs

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Definitions:

Rectification

The legal process of correcting errors in a document to reflect accurately the intentions of the parties involved.

Mistake

An error in understanding or judgment that may affect the validity of a contract.

Frustrated Contract

A contract that, through no fault of either party, has become impossible to perform, leading to its termination and relieving both parties from their obligations.

Breach of Contract

Occurs when one party fails to fulfill their obligations under the contract’s terms, allowing for legal action by the other party.