Which of the Following Statements Is False

question 79

Multiple Choice

Which of the following statements is false?

• A)Sunk costs are never relevant.
• B)Sunk costs are costs that occurred in the past.
• C)To be relevant,a cost must be an opportunity cost.
• D)To be relevant,a cost must occur in the future.

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Definitions:

Expropriation

The act of a government taking privately owned property, often without fair compensation, for the public good.

Foreign Exchange Transactions

Trades between different currencies, involving the exchange of currency from one country for that of another at an agreed rate.

Tax Policy

The set of laws and regulations that govern how taxes are collected, the rates, exemptions, and incentives, impacting individuals and businesses.

Composite Risk Rating

A comprehensive evaluation of the risk level of a portfolio by considering various risk factors and metrics to assign an overall rating.