Which of the Following Statements Is True of Relevant Costs

question 104

Multiple Choice

Which of the following statements is true of relevant costs?

• A) Variable costs are always relevant.
• B) Sunk costs are never relevant.
• C) If costs are the same under two alternatives, they are not relevant.
• D) Sunk costs are never relevant AND if costs are the same under two alternatives, they are not relevant.

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Definitions:

Greater Population

Refers to the larger portion or majority of individuals within a specified group or area.

Informed Consent

A research participant’s agreement to take part in the study, based on full information about what the experiment will involve.

Relevant Risks

The potential threats or uncertainties that are directly related to specific decisions or activities, impacting their success or outcome.

Deception

The act of misleading or deceiving someone by presenting false information or concealing the truth.