Question 1

(A)

(B)

(C)

(D)

An advantage of centralised decision-making is: Greater effectiveness in volatile environments More motivated employees Less monitoring of decisions More rapid decision making in all contexts The total amount of variable costs will: Not be affected by relevant range considerations Change proportionately with changes in production activity Increase in per unit cost as production decreases Remain constant within a relevant range of production An opportunity cost can be defined as: A cost incurred when an incorrect decision is made A cost of collecting information about a potential business opportunity All of the given answers are examples of opportunity costs A benefit foregone by choosing one alternative over another Ooo The term cost accounting is: Often used to refer to financial accounting The process of reporting to external stakeholders Is a term that encompasses both financial and management reporting A synonym for the term management accounting