Fixed Costs That Do Not Differ Between Two Alternatives Are

question 257

Multiple Choice

Fixed costs that do not differ between two alternatives are

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

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Definitions:

Bank

A financial institution that accepts deposits, offers various accounts, provides loans, and offers other financial services to individuals and businesses.

Restrictive Endorsement

A limitation placed on a check specifying the conditions under which it can be paid or transferred, often used for security purposes.

Pay To The Order

A phrase written on a financial instrument such as a check, indicating the person or entity to which the money is directed.

Bank

A financial institution licensed to receive deposits and make loans, and may offer various other financial services.