Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A) Opportunity costs are never relevant for decision-making
• B) Discretionary costs are never relevant for decision-making
• C) Marginal costs are never relevant for decision-making
• D) Sunk costs are never relevant for decision-making

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Definitions:

Non-Current Liability

A financial obligation of a company that is due for repayment in more than one year's time.

Current Portion

The part of a long-term liability that is due to be paid within the next twelve months.

Classified Statement

A financial statement in which similar items are grouped together to facilitate better understanding and analysis of the company's financial position and performance.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, whichever is longer.