For a Cost to Be Relevant,it Must Meet Which of the Following

question 133

Multiple Choice

For a cost to be relevant,it must meet which of the following criteria?

• A)It must not differ between the decision alternatives and it must be incurred in the future rather than in the past.
• B)It must differ between the decision alternatives and it must be incurred in the future rather than in the past.
• C)It must not differ between the decision alternatives and it must have occurred in the past rather than in the future.
• D)It must differ between the decision alternatives and it must have occurred in the past rather than in the future.

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Definitions:

Risk-averse Individuals

People who prefer to avoid risk and would rather accept a lower expected return on an investment than subject themselves to higher volatility and potential loss.

Comparable Bad Things

Situations or items that have similarly negative attributes or impacts, allowing for a comparison of their undesirability.

Interest Rate

The percentage of a sum of money charged for its use, typically by a bank or financial institution to borrowers, or paid to savers and investors.

Future Value

The estimated value of a current asset or investment at a specified date in the future, taking into account factors like interest rates and compounding.