Which of the Following Is a Relevant Cost

question 22

Multiple Choice

Which of the following is a relevant cost?

• A) A sunk cost
• B) A committed cost
• C) An incremental cost
• D) A historical cost

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Definitions:

Business Executives

Individuals who hold senior positions within a company, responsible for strategic decision-making and overall organizational leadership.

Harvard Business Review

A management magazine that is a product of Harvard Business Publishing that provides insights and research on management practices and trends.

Perceptual Distortion

An error in how we interpret or understand sensory information, causing us to misjudge part of our environment or social interactions.

Primacy Effect

A cognitive bias that results in a person recalling information presented at the beginning of a list better than information in the middle or end.