Avoidable costs are those costs that
A)are always variable.
B)are always fixed.
C)occur only with the implementation of a particular alternative.
D)do not occur only with the implementation of a particular alternative.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be eliminated by not choosing a particular alternative. These costs do not exist in the absence of the alternative in question. Therefore, Option C is the correct choice because it specifies that avoidable costs occur only with the implementation of a particular alternative. Option A is incorrect because always variable costs may or may not be avoidable. Option B is incorrect because always fixed costs cannot be avoidable. Option D is incorrect because it does not specify whether the costs are avoidable or not.

Avoidable Costs Are Those Costs That