Question: When making decisions, managers should consider O A. costs that do not differ between alternatives. O B . sunk costs in their decisions. O c.




When making decisions, managers should consider O A. costs that do not differ between alternatives. O B . sunk costs in their decisions. O c. only variable costs. O D . revenues that differ between alternatives. When companies are price-setters, their products and services O A. tend to have a lot of competitors. OB. tend to be unique. O c. are priced by managers using a target-pricing emphasis OD. tend to be commodities. In deciding whether to drop its electronics product line, Smith Company should consider O A. the revenues it would lose from dropping the product line. O B . how dropping the electronics product line would affect sales of its other products O c. the costs it could save by dropping the product line. OD. All of the above. Ideoiding which product lines to emphasize when a production constraint exists, the company should focus on the product line that has the highest O A contribution margin ratio. OB. Contribution margin per unit of product. O c. profit per unit of product OD. contribution margin per unit of the constraint. When deciding whether to sell as is or process a product further, managers should ignore which of the following? O A. The revenue if the product is processed further OB. The costs of processing the product thus far OC. The revenue if the product is sold as is OD. The cost of processing further
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
