Great Outdoors Company operates a store in downtown Denver that has five departments including a fishing department.If the fishing department is closed,the store manager's position will not be affected,but if the entire store is closed,the manager will be terminated.Which of the following lessons should be learned from this example?

Question

Quizplus · Accepted Answer

This example demonstrates that the relevance of costs is context sensitive. The fishing department's closure has no effect on the manager's position, but the closure of the entire store results in the manager's termination. This implies that the relevance of costs, such as the cost of keeping the store open, depends on the context in which they are being considered.

Great Outdoors Company Operates a Store in Downtown Denver That