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The relevance of a particular cost to a decision is determined by?
Suggested Answer: D
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Relevance is the capacity of information to make a difference in a decision by helping users of that information to predict the outcomes of events or to confirm or correct prior expectations. Thus, relevant costs are those expected future costs that vary with the action taken. All other costs are constant and therefore h no effect on the decision.
13 comments · newest first
RI
Ria
11 months ago
Number of decision variables isn't really relevant here.
HA
Hannah
12 months ago
Really? I thought riskiness played a bigger role.
JA
Jacqueline
12 months ago
Definitely agree with D!
LA
Lamar
12 months ago
I think the amount of the cost matters too.
CR
Cristy
1 year ago
It's all about the potential effect on the decision!
PA
Paulina
1 year ago
This is tricky! I want to say it's about the riskiness of the decision, but I can't recall if that's the right angle to take.
ME
Melvin
1 year ago
I remember a practice question that mentioned the importance of decision variables, but I'm not sure if that's the main factor here.
RI
Rikki
1 year ago
I think the relevance of a cost really depends on how it affects the decision, so I might lean towards option D.
QU
Quentin
1 year ago
I feel like the amount of the cost could matter, but it seems more about its impact on the decision itself.
DO
Donte
1 year ago
I'm a bit confused by this question. The AXIS Design Tool seems to have multiple capabilities, so I'm not sure which one is the correct answer. I'll have to read the options more closely.
MI
Milly
1 year ago
Wait, what's the difference between all these keyboard shortcuts? I better double-check the details to make sure I pick the right one.
EU
Eun
1 year ago
Hmm, I'm not too familiar with Tanzu Mission Control, I'll have to read through the options carefully.
GL
Glenna
1 year ago
I'm pretty confident the answer is A. Integer division truncates the decimal, so 5/2 would give you 2, not 2.5 or 3. Gotta remember those integer division rules!