Costs that will be eliminated if a particular course of action is undertaken are called
A)sunk costs.
B)opportunity costs.
C)accounting costs.
D)avoidable costs.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be eliminated if a particular course of action is undertaken. Sunk costs are costs that have already been incurred and cannot be recovered. Opportunity costs are the costs associated with the best alternative foregone when making a decision. Accounting costs refer to the costs that a business incurs to maintain its accounting records. Therefore, the best choice is D - avoidable costs.

Costs That Will Be Eliminated If a Particular Course of Action