Relevant Costs in Business Decisions

question 90

Essay

Relevant costs in business decisions
(a)Explain what is meant by each of the following terms: opportunity cost,sunk cost,and out-of-pocket cost.
(b)Identify which,if any,of the above three types of cost would be considered relevant in making a business decision.

---

Definitions:

Neural Circuits

Networks of interconnected neurons that work together to perform specific functions or behaviors in the brain and nervous system.

Anatomical Centres

Specific areas of the body or brain that are responsible for particular physiological functions or processes.

Brain Regulation

The processes by which the brain controls and coordinates bodily functions and responses to external and internal stimuli.

Hindbrain

The posterior portion of the brain comprising the cerebellum, pons, and medulla oblongata, involved in regulating basic life functions.