Question

Which of the following statements regarding costs and decision making is correct? Per-unit fixed cost amounts are valid only for make-or-buy decisions. Fixed costs must be considered only on a per-unit basis. Sunk costs can be misleading in make-or-buy decisions because these amounts appear to be relevant differential costs. Per-unit fixed costs can be misleading because such amounts appear to behave as variable costs when, in actuality, the amounts are related to fixed expenditures. Opportunity costs should be ignored when evaluating decision alternatives.

Answer 1

The correct answer is Per-unit fixed costs can be misleading because such amounts appear to behave as variable costs when, in actuality, the amounts are related to fixed expenditures.

Step-by-step explanation:

To correctly determine a variable that allows making decisions regarding the behavior of costs, it is necessary to take the production consolidation and study each element necessary for the process in order to identify possible deviations that cause some unwanted behavior of the entire process. . The fixed cost per unit is only a reference to establish a profit margin on the products, so it does not include the fixed costs related to the production process.