A Cost That Cannot Be Avoided or Changed Because It

question 58

Multiple Choice

A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n) :

• A) Uncontrollable cost.
• B) Incremental cost.
• C) Opportunity cost.
• D) Out-of-pocket cost.
• E) Sunk cost.

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Definitions:

All-benefits Approach

A marketing strategy that emphasizes all the benefits of a product or service to appeal to a wide range of consumers.

Points-of-difference

Unique attributes or features that set a product, service, or brand apart from its competitors in the eyes of the target market.

CVP

Stands for Cost-Volume-Profit analysis, a financial tool used to determine how changes in costs and volume affect a company's operating income and net income.

Diversified Market

A market characterized by a variety of products, services, and players, aiming to reduce risks and cater to different customer segments.