Which of the Following Decision Makers Is Least Likely to Be

question 30

Multiple Choice

Which of the following decision makers is least likely to be among the users of management accounting reports developed by Sears Roebuck and Co.?

• A)The chief executive officer of Sears.
• B)The manager of the Automotive Department in a Sears' store.
• C)The manager of a mutual fund considering investing in Sears' common stock.
• D)Internal auditors within the Sears organization.

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced; a measure of economies of scale.

AVC

Average Variable Cost is the per-unit variable cost of production, which changes with the level of output.

Average Variable Cost

The cost per unit of output that varies directly with the volume of production, excluding fixed costs.