For Purposes of Decision Making, Avoidable Costs Are Costs That

question 51

Multiple Choice

For purposes of decision making, avoidable costs are costs that:

• A) were incurred in the past.
• B) will not be incurred in the future, regardless of the alternative chosen.
• C) differ between alternatives.
• D) None of these.

---

Definitions:

Robinson-Patman Act

A United States federal law aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like location, age, or purchase quantity.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Intermediate Product

A product that is a result of a process but is also used as an input in the production of a final or finished product.