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One Should Always Be Wary of Using Unit Costs for Decision-Making,because

Question 2

Multiple Choice

One should always be wary of using unit costs for decision-making,because unit costs:


A) disguise the true nature of how costs vary with production
B) can be multiplied by a different number of units,suggesting that the cost data is scalable
C) generate misleading results when the company faces an increasing cost curve
D) ignore step-fixed costs
E) All of the choices are correct

Correct Answer:

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