Regarding costs,which of the following statements is true?
A) costs can be measured in different ways
B) costs appropriate for financial reporting purposes are appropriate for decision-making purposes
C) the relevant cost in economic decision making is the initial cost
D) sunk costs should always be considered in making operating decisions
E) none of these is true

Question

Regarding costs,which of the following statements is true?
A) ​costs can be measured in different ways
B) ​costs appropriate for financial reporting purposes are appropriate for decision-making purposes
C) ​the relevant cost in economic decision making is the initial cost
D) ​sunk costs should always be considered in making operating decisions
E) ​none of these is true

Quizplus · Accepted Answer

Costs can be measured in different ways depending on the purpose of the analysis. For example, for financial reporting purposes, costs may follow accounting principles while for decision-making purposes, costs may consider opportunity costs and incremental costs.

Regarding Costs,which of the Following Statements Is True