Which of the Following Is Irrelevant When Making a Decision

question 101

Multiple Choice

Which of the following is irrelevant when making a decision?

• A)The cost of an asset that the company is considering replacing
• B)Fixed overhead costs that differ among alternatives
• 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 drop a separate unprofitable product line

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Definitions:

Illegal Interference

Unauthorized or unlawful meddling or involvement in the affairs or property of others, often resulting in harm or damage.

Diminishing Returns

A rephrased definition: The principle stating that successive increases in inputs for production result in gradually decreasing increments in output.

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be changed, while others may be varied to adjust production levels.

Long Run

A period of time in economics during which all factors of production and costs are variable.