The costs that influence decisions to supply are always:
A)average costs.
B)avoidable costs.
C)sunk costs.
D)costs not yet incurred.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be avoided by not engaging in a particular activity, such as supplying a product. These are the costs that are relevant to decision-making regarding supply, as they represent the costs that can be saved by not supplying. Average costs, sunk costs, and costs not yet incurred are not directly relevant to the decision to supply.

The Costs That Influence Decisions to Supply Are Always