A Relevant Cost Is

question 93

Multiple Choice

A relevant cost is:

• A)the foregone benefit of choosing to do one thing instead of another.
• B)a cost that differs across decision alternatives.
• C)a cost that has already been incurred.
• D)a cost that is the same regardless of the alternative the manager chooses.

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Definitions:

Common Stock

Equity ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Ontario Ltd.

A term used to designate a limited company in the province of Ontario, Canada, often seen in business names.

Joint Venture

Involves the joining together of parts of companies to accomplish specific, limited objectives. Joint ventures are controlled by the combined management of the two (or more) parent companies.

Independent Companies

Firms that operate independently without being owned or controlled by another entity or conglomerate.