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The relevance of a particular cost to a decision is determined by the*1 pointRisk level of the decisionNone of the aboveAccuracy and verifiability of the costPotential effects on the decisionSize of the cost

Question

The relevance of a particular cost to a decision is determined by the*1 pointRisk level of the decisionNone of the aboveAccuracy and verifiability of the costPotential effects on the decisionSize of the cost

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Solution

The relevance of a particular cost to a decision is determined by the "Potential effects on the decision". This is because the potential effects of the cost on the decision will determine whether the cost is relevant or not. If the cost has a significant impact on the decision, then it is relevant. If it does not have a significant impact, then it is not relevant. The size of the cost, the risk level of the decision, the accuracy and verifiability of the cost, and none of the above are not the primary factors in determining the relevance of a cost to a decision.

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Similar Questions

For make-or-buy decisions, relevant costs include:Group of answer choicesdifferential costs plus fixed costsincremental costs plus differential costsincremental costs plus sunk costsincremental costs plus opportunity costs

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Theory of cost,

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This criterion involves evaluating the expected costs associated with each alternative and selecting the one with the lowest expected cost.1 pointMaximizing Risk or VariabilityMinimizing Expected CostSatisficingClear selection

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