Which of the Following Costs Should Be Used When Choosing

question 83

Multiple Choice

Which of the following costs should be used when choosing between two decision alternatives? $$\begin{array} { l c c c } & \text { Relevant } & \text { Sunk } & \text { Opportunity } \\& \text { Cost } &\text { Cost } & \text { Cost } \\A.&\text { No } & \text { Yes } & \text { Yes } \\\text { B. } & \text { Yes } & \text { Yes } & \text { Yes } \\\text { C. } & \text { Yes } & \text { Yes } & \text { Yo } \\\text { D. } & \text { Yes } & \text { No } & \text { Yes } \\\text { E. } & \text { No } & \text { No } & \text { Yes }\end{array}$$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

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Definitions:

Note

A legal document that represents a type of debt or an obligation to pay an amount of money at a future date.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than the account of a private individual, offering a high level of guarantee of payment.

Bank

A banking entity authorized to accept deposits, extend credit, and offer diverse financial services to both private individuals and commercial entities.

Authorization to Confess Judgment

A legal provision where a debtor gives a creditor the right to enter a judgment against them without trial if they fail to meet the terms of an agreement.