Which of the Following Statements Is TRUE When Making a Decision

question 90

Multiple Choice

Which of the following statements is TRUE when making a decision between two alternatives?

• A)Variable costs may not be relevant when the decision alternatives have the same activity levels.
• B)Variable costs are not relevant when the decision alternatives have different activity levels.
• C)Sunk costs are always relevant.
• D)Fixed costs are never relevant.

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Definitions:

Behaviorism

An educational theory suggesting that conditioning is the root through which behaviors are learned.

Psychoanalytic Psychology

A branch of psychology that focuses on understanding human behavior through the exploration of the unconscious mind, as developed by Sigmund Freud.

American Philosopher

A scholar originating from the United States who engages in the study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Austrian Physician

Likely refers to Sigmund Freud, the founding father of psychoanalysis, though there are many other notable Austrian physicians.