Which of the following costs is often important in decision making, but is omitted from conventional accounting records?
A)Sunk cost.
B)Indirect cost.
C)Fixed cost.
D)Opportunity cost.

Question

Quizplus · Accepted Answer

Opportunity cost is often important in decision making, but is omitted from conventional accounting records as it refers to the cost of forgoing the next best alternative. Sunk cost refers to costs that have already been incurred and cannot be recovered, indirect costs refer to costs not directly related to the production of a specific product or service, and fixed costs refer to costs that do not vary with changes in production levels.

Which of the Following Costs Is Often Important in Decision