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:

Price

The price in terms of cash expected, necessary, or donated in exchange for a commodity.

Demand Function

An equation showing the relationship between the quantity of a good consumers want to buy and its price, alongside other factors like income and prices of related goods.

Buick Owner's Demand

The specific preferences and buying patterns of individuals who own or are interested in purchasing Buick vehicles.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.