Specik, Inc.is considering the following alternatives: Which of the following are relevant in choosing between the alternatives?
A)Variable costs
B)Revenues
C)Fixed costs
D)Variable costs and fixed costs

Question

Specik, Inc.is considering the following alternatives:  Which of the following are relevant in choosing between the alternatives?
A)Variable costs 
B)Revenues 
C)Fixed costs 
D)Variable costs and fixed costs

Quizplus · Accepted Answer

Choosing between alternatives involves analyzing the costs associated with each option. Both variable costs and fixed costs are relevant in this decision-making process as they impact the overall profitability of each alternative. Revenues are also relevant, but they are not sufficient on their own to make a decision. Therefore, the best choice is D, which includes both variable costs and fixed costs.