A Cost Incurred in the Past That Is Not Relevant

question 241

Multiple Choice

A cost incurred in the past that is not relevant to any current decision is classified as a(n) :

• A) period cost.
• B) opportunity cost.
• C) sunk cost.
• D) differential cost.

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Definitions:

Validity of Measure

Refers to the degree to which a test or instrument accurately measures what it intends to measure.

Variability

The extent to which data points in a set differ from each other and from the mean, indicating the spread or dispersion of the dataset.

Double-blind Design

An experimental design in which neither the participants nor the experimenters know who is receiving a particular treatment, used to eliminate bias in research findings.

Confounds Increased

The introduction of variables or factors that obscure or confuse the relationship between the variables being studied, complicating the interpretation of results.