Consider the Following Costs and Decision-Making Situations

question 85

Multiple Choice

Consider the following costs and decision-making situations:
I. The cost of existing inventory, in a keep vs. disposal decision.
II. The cost of special electrical wiring, in an equipment acquisition decision.
III. The salary of a supervisor who will be transferred elsewhere in the organization, in a department-closure decision.
Which of the above costs is (are) relevant to the decision situation noted?

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) II and III.

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Definitions:

Venules

Small vessels that transport blood from the capillaries to the veins, playing a key role in the circulatory system.

Atrioventricular Node

A part of the heart's electrical system situated between the atria and ventricles that regulates the timing of heart muscle contractions.

Action Potential

Brief reversal of the charge difference across a neuron membrane.