Which of the Following Would Be an Irrelevant Cost

question 4

Multiple Choice

Which of the following would be an irrelevant cost?

• A) Future costs that differ among alternatives.
• B) Benefits foregone by choosing one alternative over another.
• C) Costs that have already been incurred.
• D) Costs that are avoidable.

Understand the types and components of procurement outsourcing contracts.

Identify scenarios where insourcing or outsourcing is beneficial.

Recognize the challenges and concerns associated with outsourcing.

Determine the role of supply managers in developing, negotiating, and managing outsourcing contracts.

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Definitions:

Fundamental Qualitative Characteristics

The primary attributes that make the information provided in financial statements useful to users.

FASB Conceptual Framework

A foundational set of objectives and concepts that guide the Financial Accounting Standards Board in developing accounting standards.

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting in the United States.

Financial Reporting

Financial reporting involves the disclosure of financial information to various stakeholders about the company's performance over a period.