Relevant Costs Are Often Referred to As

question 11

Multiple Choice

Relevant costs are often referred to as:

• A) Unavoidable costs.
• B) Differential costs.
• C) Sunk costs.
• D) All of these answers are correct.

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Definitions:

Future Net Earnings

The projected amount of money that a company is expected to earn in the future after all expenses and taxes have been deducted.

Business Asset

Resources owned by a company that have economic value and can contribute to future profits.

Pure Interest Yield

The portion of interest or return on an investment that represents the compensation for the time value of money, excluding any other types of returns or costs.

Investment Choices

decisions made by individuals or entities about where to allocate resources, including money or capital, to generate a return or achieve financial objectives.