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The Method of Managerial Judgement in Determining the Cost Behavior

Question 102

Multiple Choice

The method of managerial judgement in determining the cost behavior uses:


A) a manager's experience and past observation of cost relationships to determine fixed and variable costs.
B) a manager's skills in determining practical capacity.
C) a manager's past observation to distinguish flexible resources and committed resources.
D) a manager's ethical focus to determine step-variable costs and step-fixed costs.

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