Costs That Are Significant in the Decision-Making Process but Are

question 53

Multiple Choice

Costs that are significant in the decision-making process but are NOT recorded in the accounting records are:

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

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Definitions:

Truman Administration

The period of U.S. presidency under Harry S. Truman, from 1945 to 1953, notable for its implementation of the Marshall Plan, the establishment of NATO, and the beginning of the Cold War.

Berlin Airlift

A military operation in 1948-1949 where Western allies supplied West Berlin by air during the Soviet blockade.

Soviet Union

A federal socialist state in Eurasia that existed from 1922 to 1991, composed of multiple republics, and a principal actor in the Cold War.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, from the end of World War II until the dissolution of the Soviet Union in 1991, characterized by threats, propaganda, and other measures short of open warfare.