Asked by
Zaige Perry
on Nov 19, 2024Verified
Future costs that do not differ between the alternatives in a decision are avoidable costs.
Avoidable Costs
Avoidable costs are expenses that can be eliminated if a particular decision is made or if a certain activity is stopped.
Alternatives
Various options or choices available to decision-makers.
Decision
The choice made between two or more alternatives, often in a business or strategic context, that affects the course of action.
- Understand the concept and relevance of avoidable and sunk costs in decision-making.
Verified Answer
TV
Learning Objectives
- Understand the concept and relevance of avoidable and sunk costs in decision-making.