The Costs Which Can Be Avoided If We Alter Our

question 6

Multiple Choice

The costs which can be avoided if we alter our decisions or choices are referred to as:

• A)average costs.
• B)opportunity costs.
• C)marginal costs.
• D)sunk costs.

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Definitions:

Profit Margin

A financial indicator showing the percentage of income surpassing the cost of goods sold, employed to evaluate a company's financial well-being.

Total Assets

The sum of all assets owned by an entity, including current and non-current assets, used to provide a comprehensive view of the entity's financial strength.

Return On Investment

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments, measuring gain versus cost.

Net Book Value

The value of an asset as recorded in the accounting records, subtracting accumulated depreciation or amortization from the original cost.