Which of the Following Cost Classifications Would Not Be Considered

question 26

Multiple Choice

Which of the following cost classifications would not be considered relevant in comparing decision alternatives?

• A) opportunity cost.
• B) differential cost.
• C) sunk cost.
• D) None of these.

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Definitions:

External Suppliers

Third-party entities that provide goods or services to a company, but are not part of the company itself.

Annual Capacity

The total output a company can produce in a year using its resources efficiently.

Opportunity Cost

Forgoing the potential gains from various choices by settling on one option.

Supplying Division

The unit or segment within a larger organization responsible for providing materials, products, or services to another division or department.