Roberto owns a small body shop.His major costs include labor,parts,and rent.In the decision-making process,these costs are considered to be ________.
A) empirical costs
B) qualitative factors
C) quantitative factors
D) opportunity costs

Question

Quizplus · Accepted Answer

Labor, parts, and rent are all measurable costs that can be calculated and analyzed using quantitative methods. Therefore, they are quantitative factors. Empirical costs refer to costs that can be observed or measured through direct experience, while qualitative factors are non-numerical factors such as customer satisfaction or employee morale. Opportunity costs refer to the value of the next best alternative that is foregone when making a decision. None of these concepts accurately describe the costs mentioned in the scenario.

Roberto Owns a Small Body Shop