Decision-Making Concepts Quiz

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What is a differential cost in the decision-making process?

Opportunity cost of alternative courses of action

Sunk cost of alternative courses of action

Fixed cost of alternative courses of action

Cost that changes among alternative courses of action (correct)

What is a relevant cost in decision making?

A cost that is different for each option available to the decision maker (correct)

The cost involved in producing additional units of product

A cost that remains the same for each option available to the decision maker

The cost involved in producing fewer units of product

What are Oracle's total costs to process olives into olive oil each week?

$214,000 (correct)

$211,000

$217,000

$199,000

How much can Oracle spend to bottle the oil as is?

$15,000 Signup and view all the answers

How much is Oracle's expected increase in purchasing empty bottles?

$3,000 Signup and view all the answers

What is a relevant cost in decision making?

A cost that is different for each option available to the decision maker Signup and view all the answers

What is a differential cost in the decision-making process?

Cost that changes among alternative courses of action Signup and view all the answers

In the decision-making process, what is a sunk cost of alternative courses of action?

A cost that has already been incurred and cannot be recovered Signup and view all the answers

What does a fixed cost of alternative courses of action represent in decision making?

A cost that remains the same for each option available to the decision maker Signup and view all the answers

What is the cost involved in producing additional units of a product known as?

The cost involved in producing additional units of product Signup and view all the answers

Decision-Making Concepts Quiz

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Questions and Answers

What is a differential cost in the decision-making process?

What is a relevant cost in decision making?

What are Oracle's total costs to process olives into olive oil each week?

How much can Oracle spend to bottle the oil as is?

How much is Oracle's expected increase in purchasing empty bottles?

What is a relevant cost in decision making?

What is a differential cost in the decision-making process?

In the decision-making process, what is a sunk cost of alternative courses of action?

What does a fixed cost of alternative courses of action represent in decision making?

What is the cost involved in producing additional units of a product known as?

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