The relevance of a particular cost to a decision is determined by the: (CMA adapted)
A)riskiness of the decision.
B)number of decision variables.
C)amount of the cost.
D)potential effect on the decision.
E)accuracy of the cost.

Question

Quizplus · Accepted Answer

The potential effect of a cost on a decision is the most relevant factor to consider when deciding whether or not to include it in the decision-making process. Other factors such as the amount and accuracy of the cost may also be important, but ultimately the decision should be based on the potential impact the cost will have on the outcome. The riskiness of the decision and the number of decision variables may also be relevant, but to a lesser extent than the potential effect of a cost.

The Relevance of a Particular Cost to a Decision Is