Fixed Costs That Do Not Differ Between Two Alternatives Are

question 247

Multiple Choice

Fixed costs that do not differ between two alternatives are

• A)irrelevant to the decision.
• B)considered opportunity costs.
• C)relevant to the decision.
• D)important only if they represent a material dollar amount.

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Definitions:

Novation

The substitution of parties to an agreement, or the replacement of one agreement by another agreement.

Valid Tender

An offer of payment for goods or services that, by law, cannot be refused by the creditor if the debtor intends to discharge the debt.

Tender Of Payment

is an offer to pay a debt or obligation, specifically in a form that is legally recognized and acceptable.

Exact Amount

Specifies a precise figure or quantity, leaving no room for deviation or approximation.