Which of the Following Costs Should Be Considered When Managers

question 57

Multiple Choice

Which of the following costs should be considered when managers are making short term profitability analysis decisions?

• A) Marketing costs
• B) Design costs
• C) Research and development costs
• D) None of these

---

Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or other restrictions.

World Price

The worldwide cost of a product or service, set by the conditions of international supply and demand.

Domestic Price

The price of goods or services within a particular country, unaffected by international market variables.