When making decisions:
A)it is best to use unit costs.
B)it is best to use total costs rather than unit costs.
C)it is best to use average 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. Different decisions may require different types of costs to be considered, therefore all types of costs can be useful for making decisions depending on the circumstance. Unit costs can be useful for determining the price of individual items, while total costs can help in finding total expenses. Average costs can be useful in determining overall profitability.

When Making Decisions