A Cost Which Differs Between Alternative Courses of Action Is

question 15

Multiple Choice

A cost which differs between alternative courses of action is a:

• A)Relevant cost
• B)Sunk cost
• C)Controllable cost
• D)Non-joint cost

---

Definitions:

Real Rate of Return

The annual percentage profit earned on an investment, adjusted for changes in prices due to inflation or other external effects.

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.

Compounded Annual

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Nominal Rates

The stated interest rate on a loan or investment, not accounting for inflation or compounding effects.