Which of the Following Is NOT a Capital Budgeting Decision

question 109

Multiple Choice

Which of the following is NOT a capital budgeting decision?

• A)An airline updates its kiosks to allow passengers to self-check-in.
• B)A convenience store decides whether to expand its operations in a new location.
• C)A hospital decides whether to construct a new pediatric wing.
• D)A retail company decides whether to mark down its old inventory.

---

Definitions:

Total Variable Cost

The sum of all costs that vary with output level, including costs for raw materials, labor, and utilities that increase or decrease as production volume changes.

Average Fixed Cost

The fixed expenses of a company divided by the number of units produced, showing cost per unit.

Average Variable Cost

Average variable cost is the total variable costs of production divided by the quantity of output produced; it changes with production volume.

Marginal Cost

The expenditure required to produce one more unit of a product or service.