When a Company Is Considering the Option of Processing Their

question 76

Multiple Choice

When a company is considering the option of processing their product further to achieve higher sales revenues, they must ignore:

• A)how much additional costs are necessary to process further.
• B)how much incremental revenue can be earned if processed further.
• C)how much cost is required to produce the basic product, before processing further.
• D)will the additional processing produce any environmental toxins.

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Definitions:

Behavior

The way in which one acts or conducts oneself, especially towards others, shaped by learning, perception, and external stimuli.

Encoding

The process of converting information into a form that can be stored in memory.

Preparedness

A psychological term referring to a predisposition to learn certain types of behaviors or concepts more easily than others, often due to evolutionary pressures.

Instinctive Drift

The tendency of an animal to revert to instinctive behaviors that interfere with a conditioned response.