Select the Incorrect Statement Regarding the Use of Average Unit

question 56

Multiple Choice

Select the incorrect statement regarding the use of average unit costs.

• A) Average costs should be calculated for a sufficiently long time period to capture seasonal fluctuations in costs.
• B) Average costs are often more relevant for decision making than are actual costs.
• C) Average cost information can help managers evaluate performance of the company or departments in the company.
• D) Cost averaging should be used only for fixed costs, and not for variable costs.

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Definitions:

Median-Voter Model

A theoretical framework suggesting that the outcome of majority-rule voting systems will reflect the preferences of the median voter.

Political Logrolling

A practice where politicians exchange favors by supporting each other’s proposed legislations or policies.

Median-Voter Model

A model in political science that suggests the outcome of a majority vote is most likely to represent the preferences of the median voter.

Paradox Of Voting

The situation where individual rational actors have little incentive to vote, considering their single vote is unlikely to change the outcome, yet voting occurs on a large scale.