Costs That Have Already Been Incurred and CANNOT Be Avoided

question 70

Multiple Choice

Costs that have already been incurred and CANNOT be avoided are:

• A) Sunk costs
• B) Variable costs
• C) Differential costs
• D) Opportunity costs

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Definitions:

Standardization

The process of developing and implementing technical standards to ensure that materials, products, processes, and services are fit for their purpose.

Specialization

The process of focusing on a specific area of knowledge or skill within a profession or field of study, leading to increased efficiency and expertise.

Formalization

The extent to which rules, procedures, and standards are written and explicitly articulated within an organization, leading to consistency and predictability in behaviors and processes.

Formalization

The extent to which rules, procedures, and standards are written and explicitly articulated within an organization to guide behaviors and operations.