XYZ,IncIs Considering Adding a Product Line That Would Utilize Unused

question 108

Multiple Choice

XYZ,Inc.is considering adding a product line that would utilize unused floor place of their manufacturing plant.The floor space would be considered a(n) :

• A)variable cost.
• B)opportunity cost.
• C)sunk cost.
• D)irrelevant cash flow.

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Definitions:

Decentralization

Decentralization refers to the distribution of decision-making authority from a central figure or location to lower levels within an organization or government, allowing for more localized and responsive decision-making.

Decision Making

The process of identifying and choosing alternatives based on the values, preferences, and beliefs of the decision-maker.

Informal Structures

Unofficial relationships and networks within an organization that influence decision-making, communication, and relationships.

Emotional Support

Assistance provided through empathy and concern, offering comfort and reassurance to individuals who are experiencing distress.