In Deciding Whether to Sell a Product or to Process

question 32

Multiple Choice

In deciding whether to sell a product or to process it further, which of the following pieces of information would not be relevant to the decision?

• A) Costs of further processing.
• B) Costs incurred up to the decision point.
• C) Sales price if processed further.
• D) Customer demand with further processing.

---

Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Purchasing Power

The real value of money, reflecting how much goods or services one unit of money can buy.

Period

A length or portion of time, often defined for specific calculations or measurements.

Ratio

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other.