When making decisions:
A)it is best to use average costs
B)it is best to use unit costs
C)it is best to use total costs rather than unit costs
D)All of these types of costs can be used for decision making; it varies depending on the decision required.

Question

Quizplus · Accepted Answer

All of these types of costs can be used for decision making; it varies depending on the decision required. The choice of which type of cost to use should be based on the specific decision that needs to be made. For example, unit costs might be more appropriate for decisions related to production or pricing, while total costs might be more relevant for overall performance evaluation. Ultimately, the best choice of cost measurement will depend on the context of the decision being made.

When Making Decisions