Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
A) sunk costs.
B) opportunity costs.
C) avoidable costs.
D) irrelevant costs.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be eliminated in whole or in part if a particular business segment is discontinued. Sunk costs are costs that have already been incurred and cannot be recovered, opportunity costs are the benefits foregone by choosing one alternative over another, and irrelevant costs do not change based on the decision being made.

Costs That Can Be Eliminated in Whole or in Part