Which Cost Is Not Relevant in Making Financial Decisions

question 47

Multiple Choice

Which cost is not relevant in making financial decisions?

• A)Sunk costs
• B)Opportunity costs
• C)Incremental costs
• D)Out-of-pocket costs

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Definitions:

Office Furniture

Items and accessories designed and manufactured to be used in an office environment, including desks, chairs, cabinets, and workstations.

Personal Funds

Money that belongs to an individual and is used for personal, not business, purposes.

Angel Investor

A financially well-to-do person who backs a beginning enterprise, usually receiving convertible debt or a portion of ownership in exchange.

Bootstrapping

A self-starting process that is supposed to proceed without external input, often used to describe startups that grow without major external funding.