Managers should consider ________ when making any sort of decision.
A)only fixed costs
B)sunk costs
C)only variable costs
D)revenues that differ among alternatives

Question

Quizplus · Accepted Answer

When making a decision, managers should consider the revenues that differ among alternatives. It is important to weigh the potential gain or loss from each option, and revenues offer a clear measurement of the potential benefits of each alternative. Fixed costs may be disregarded if they do not vary with the decision at hand, while sunk costs are no longer relevant because they are already incurred and cannot be recovered. Variable costs are important, but they alone do not provide a full picture of the potential outcomes.

Managers Should Consider ________ When Making Any Sort of Decision