Fixed Costs That May Be Avoided in the Future Are

question 166

Multiple Choice

Fixed costs that may be avoided in the future are referred to as

• A) replacement costs.
• B) opportunity costs.
• C) relevant costs.
• D) sunk costs.

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Definitions:

Valid Offer

A proposal made in terms which are clear enough to be accepted and form a legally binding contract.

Communicated

Information or ideas that have been shared or transmitted between parties, through verbal, written, or nonverbal methods.

One-Sided Promise

An agreement where only one party makes an enforceable commitment to the other without receiving a reciprocal obligation.

Breach Of Contract

A violation of a contractual obligation by failing to perform one's own promise, partially or wholly.