Osprey Company Is Trying to Decide Between the Following Two

question 102

Multiple Choice

Osprey Company is trying to decide between the following two alternatives: Which of the following conclusions can be drawn from this example?

• A) Variable costs are always relevant for decision making.
• B) Fixed costs are sunk and thus are never relevant for decision making.
• C) Relevant costs may include variable costs and fixed costs.
• D) None of the above.

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Definitions:

Verbal Fluency

The ability to generate words rapidly, typically measured during cognitive testing as an aspect of executive functions or language abilities.

Q-Sort Procedure

A method used in psychology to study individual's viewpoints, personality, or attitudes by sorting a set of statements according to criteria on a scale.

Self-Discipline

The ability to control one's feelings and overcome one's weaknesses by adhering to a set of rules or a code of behavior.

Conscientiousness

A fundamental personality trait characterized by organization, dependability, efficiency, and goal-directed behavior.