Costs That Differ Between Alternatives Are Called

question 36

Multiple Choice

Costs that differ between alternatives are called:

• A) sunk costs.
• B) irrelevant costs.
• C) relevant costs.
• D) unavoidable costs.

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Definitions:

Maturity Value

The amount payable to an investor at the end of a fixed-term investment including the principal and the interest.

Compounded Annually

Compounding annually is a method where interest is added to the principal sum at the end of each year, impacting the total interest earned or paid.

Objective

A goal or target that is aimed to be achieved, often used in planning and strategy contexts.

Compounded Semi-Annually

Interest on an investment that is calculated twice a year and added to the principal sum, affecting the total interest earned.