Asked by
Paola Vallejo
on Oct 10, 2024
Verified
Avoidable costs are irrelevant costs in decisions.
Avoidable Costs
Expenses that can be eliminated if a particular decision is made or if a particular activity is discontinued.
Irrelevant Costs
Costs that should not influence decision-making because they will not change regardless of the outcome.
- Become proficient in identifying relevant and irrelevant costs in the context of decision-making.
- Discern between the characteristics of avoidable and sunk costs.
Verified Answer
QA
Learning Objectives
- Become proficient in identifying relevant and irrelevant costs in the context of decision-making.
- Discern between the characteristics of avoidable and sunk costs.