All the Following Are Characteristic of Relevant Costs Except

question 105

Multiple Choice

All the following are characteristic of relevant costs except:

• A) They are generally variable.
• B) They are not committed.
• C) They are different in amount for different options.
• D) They are costs that will be incurred in the future.
• E) They are confined to inventory-related (i.e., product) costs.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.

Rate Of Interest

The percentage of an amount of money which is charged for its use per period of time, often expressed annually.

Unit Banking States

States in the U.S. where banks are required to operate only a single banking office, limiting their physical presence and expansion.

Bank Charter

A legal document that authorizes the creation of a banking institution and outlines its operations.