Costs That Are Never Relevant to a Decision Because They

question 44

Multiple Choice

Costs that are never relevant to a decision because they are always the same are:

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

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Definitions:

Global Corporations

Large multinational companies that operate and provide goods or services in multiple countries around the world.

Gray Market Activity

The trade of goods through distribution channels that are unauthorized by the original manufacturer. This is typically legal but unregulated and unofficial.

Countertrade

A form of international trade in which goods or services are exchanged for other goods or services rather than for hard currency.

Dumping

Selling a product for a price less than the cost of production to capture market share and force competitors out of the market.