Which of the Following Is Irrelevant When Making a Decision

question 160

Multiple Choice

Which of the following is irrelevant when making a decision?

• A)Fixed overhead costs that differ among alternatives
• B)The cost of an asset that the company is considering replacing
• C)The cost of further processing a product that could be sold as is
• D)The expected increase in contribution margin of one product line as a result of a decision to discontinue a separate unprofitable product line

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Definitions:

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, based on the weight of its cost in total inventory.