Question

In the case of flexible resources, if the demand for an activity changes across alternatives, then resource spending will:________________________________.
a.become half of what it was before and the cost of the activity is irrelevant to the decision.
b.become twice of what it was before and the cost of the activity is irrelevant to the decision.
c.remain constant and the cost of the activity is relevant to the decision.
d.change and the cost of the activity is relevant to the decision.

Answer 1

Answer:

D. Change and the cost of the activity is relevant to the decision.

Explanation:

Since flexible resources are supplied as needed, and their costs appear to be variable with demand, so change and the cost of the activity is relevant to the decision.