When Considering a Project That Will Require Production Using Otherwise

question 87

Multiple Choice

When considering a project that will require production using otherwise idle resources, which of the following are TRUE?

• A)Avoidable fixed costs are irrelevant.
• B)Only the variable costs of the project are relevant.
• C)Only financial factors should be considered.
• D)The project should not be undertaken if total revenue from the project is less than the total costs of production.
• E)In the short run, even if revenue is less than the total costs of production, the project could help the company's overall operating income.

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Definitions:

Major Systems

Refers to the primary or dominant frameworks, organizations, or structures within a particular field or society.

Psychic Energy

Theoretical construct in psychology that represents the power or drive behind human thoughts, feelings, and behaviors.

Libido

A term primarily used in psychoanalytic theory to denote the sexual energy or drive within human beings.

Sexual Energy

The life force, libido, or creative power in psychoanalytic theory that drives sexual attraction and physical, emotional, and spiritual health.