Unit cost data can potentially mislead decision makers when ________ costs are included.
A)sunk
B)irrelevant
C)opportunity
D)relevant

Question

Quizplus · Accepted Answer

Unit cost data should only include relevant costs, which are the costs that vary between options and have an impact on the decision making process. Including irrelevant costs can lead to misleading information and may result in incorrect decisions. Sunk costs are also irrelevant as they cannot be recovered and do not affect future decisions. Opportunity costs, however, are relevant costs as they represent the potential benefits foregone by choosing one option over another.

Unit Cost Data Can Potentially Mislead Decision Makers When ________