Joseph Evaluated Seven Different Computer Models and Decided That the Dell

question 122

Multiple Choice

Joseph evaluated seven different computer models and decided that the Dell model was the best choice for his company's purposes. After obtaining permission, he ordered the computers from a reputable company. Which stage of the decision-making process is Joseph carrying out in making the order?

• A) Generate and evaluate alternative courses of action.
• B) Identify and define the problem.
• C) Evaluate results.
• D) Implement the decision.
• E) Decide on a preferred course of action.

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Definitions:

Differential Costs

The difference in total cost that will result from selecting one choice over another.

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.