Costs that occur only with the implementation of a particular alternative are referred to as
A)avoidable.
B)sunk.
C)opportunity.
D)relevant.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that are directly associated with a particular alternative and would not be incurred if that alternative were not chosen. These costs are relevant in decision making as they are directly affected by the decision being made. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered regardless of the alternative chosen, making them irrelevant in decision making. Opportunity costs are the benefits that are forfeited by choosing one alternative over another, and relevant costs are costs that will change depending on the alternative chosen.

Costs That Occur Only with the Implementation of a Particular