One Should Always Be Wary of Using Unit Costs for Decision-Making

question 4

Multiple Choice

One should always be wary of using unit costs for decision-making, because unit costs:

• A)disguise the true nature of how costs vary with production
• B)can be multiplied by a different number of units, suggesting that the cost data is scalable
• C)generate misleading results when the company faces an increasing cost curve
• D)ignore step-fixed costs
• E)all of the above

---

Definitions:

Intellectual Ideas

Intellectual ideas pertain to or involve the exercise of the intellect, innovative concepts, or theories.

Philosophy

The study of fundamental nature of knowledge, reality, and existence, especially when considered as an academic discipline.

Only Children

Children who do not have siblings and, as a result, receive all the attention and resources from their parents.

Maladjusted

Describes individuals having difficulty in adapting to the demands and expectations of their social environment.