Costs That Can Be Eliminated in Whole or in Part

question 62

Multiple Choice

Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:

• A) sunk costs.
• B) opportunity costs.
• C) avoidable costs.
• D) irrelevant costs.

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Definitions:

Regulatory Agency

A government body responsible for enforcing laws and regulations to protect public interest in specific sectors, such as healthcare, finance, and the environment.

Profit Maximized

The point at which a company achieves its highest level of profit through the optimal balance of cost and revenue.

Charging Price

The act of setting a specific price for a product or service offered to consumers.

Profit Maximizing

The process or strategy aimed at achieving the highest possible profit within a given business context.