Relevant costs of a bidding decision should exclude revenues lost on lower-priced sales to existing customers.

Name: Relevant costs of a bidding decision should exclude revenues lost on lower-priced sales to existing customers.
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Question

Quizplus · Accepted Answer

Relevant costs of a bidding decision should include all costs and revenues that will change as a result of the decision, including potential lost revenues from lower-priced sales to existing customers, as these are opportunity costs.

Relevant Costs of a Bidding Decision Should Exclude Revenues Lost