Ysanne Uses Intuition to Make Many of Her Decisions

question 58

Multiple Choice

Ysanne uses intuition to make many of her decisions.Intuitive decisions are usually

• A)based on experience.
• B)"good enough."
• C)irrational.
• D)ineffective.
• E)optimizing.

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and to provide profit to the company.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenditures that adjust based on the quantity of production or the scale of sales.