Qualitative Factors ________

question 70

Multiple Choice

Qualitative factors ________.

• A) generally are easily measured in quantitative terms
• B) are generally irrelevant for decision making
• C) may include either financial or nonfinancial information
• D) include customer satisfaction

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor.

Marginal Cost

The incremental cost involved in creating an extra unit of a product or service.

Diseconomies of Scale

Occur when a firm's costs per unit increase as its output increases, opposite to economies of scale.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including labor, materials, and overhead expenses.