Asked by
Juliette Morales
on Nov 01, 2024
Verified
One should always be wary of using unit costs for decision-making,because unit costs:
A) disguise the true nature of how costs vary with production
B) can be multiplied by a different number of units,suggesting that the cost data is scalable
C) generate misleading results when the company faces an increasing cost curve
D) ignore step-fixed costs
E) All of the choices are correct
Step-fixed Costs
Costs that remain constant for a certain level of activity, but can change when a new activity level is reached.
Unit Costs
The cost incurred to produce, store, or purchase one unit of a product or service.
Production
The process of creating, manufacturing, or generating goods and services.
- Recognize the impact of fixed and variable costs in cost accounting.
Verified Answer
JN
Learning Objectives
- Recognize the impact of fixed and variable costs in cost accounting.