Asked by
Williamfoo Wingming
on Nov 19, 2024Verified
Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
A) sunk costs.
B) opportunity costs.
C) avoidable costs.
D) irrelevant costs.
Avoidable Costs
Expenses that can be eliminated if a particular decision is made, such as discontinuing a product or service.
Sunk Costs
Costs that have already been incurred and cannot be recovered or changed.
Business Segment
A division within a company that generates its own revenue and expenses, often focusing on a specific product or market.
- Master the importance of distinguishing between sunk costs, opportunity costs, and avoidable costs in the context of financial strategy.
Verified Answer
RM
Learning Objectives
- Master the importance of distinguishing between sunk costs, opportunity costs, and avoidable costs in the context of financial strategy.
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