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While having a discussion, Technician A says to be careful when working or inspecting under the hood. If the READY light is on, the engine can start at any time. Technician B says that only pushing the START button will start the engine. Who is correct?
Variable Cost
Costs that change in proportion to the level of goods or services that a business produces.
Relevant Costs
Costs that are directly related to a specific management decision and that will change as a result of that decision.
Sunk Costs
Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.
Alternatives
Different options or strategies available for achieving a goal or solving a problem, often considered during decision-making processes.
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