Which of the Following Statements Is True

question 22

Multiple Choice

Which of the following statements is true?

• A) External costs are the direct costs impacting an organisation.
• B) Sustainability activities can only be aligned to long-term financial performance.
• C) External costs are immaterial in multi-national organisations.
• D) Sustainability activities involve social and environmental factors.

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Definitions:

Relevant Costs

Costs that are directly affected by a specific business decision and should be considered when making that decision.

Fixed Costs Per Unit

The fixed costs associated with a product divided by the number of units produced, highlighting how these costs dilute with increased production.

Joint Products

A scenario in production where a single process yields multiple products simultaneously.

Split-Off Point

The stage in a production process where joint products can be recognized as separate products.