Select the Incorrect Statement Regarding Relevant Costs and Revenues

question 124

Multiple Choice

Select the incorrect statement regarding relevant costs and revenues.

• A) To be relevant, a cost or revenue must be future-oriented and must differ among the alternatives.
• B) Sunk costs are never relevant for decision-making purposes.
• C) Differential revenues are expected future revenues that differ from past revenues.
• D) Avoidable costs are also known as differential costs.

---

Definitions:

Public Ownership

Public Ownership refers to the possession of corporations, assets, or industries by the government rather than private individuals or organizations.

Pure Capitalism

An economic system characterized by private ownership of resources and businesses, with minimal government intervention in economic activities.

Pure Command System

An economic system characterized by the public ownership of resources and centralized planning.

Economic Questions

Economic questions are fundamental queries about how societies allocate scarce resources to produce goods and services for consumption, including decisions on what, how, and for whom to produce.