Avoidable Cash Flows Are

question 31

Multiple Choice

Avoidable cash flows are:

• A) Usually relevant to a decision
• B) Cash flows that are incurred no matter which action is taken
• C) Ignored in decision-making
• D) Are the same as irrelevant cash flows

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Definitions:

Least-Preferred

Refers to the option or choice that is viewed as the least favorable or desirable among a set of alternatives.

Offshoring

Relocation of business processes to lower-cost locations overseas.

Partnership

A type of business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Specific Undertaking

A Specific Undertaking refers to a particular project or task that is distinctly defined within the scope of work or agreement.