Which of the following cost classifications would not be considered relevant in comparing decision alternatives?
A) opportunity cost.
B) differential cost.
C) sunk cost.
D)none of the above.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be changed by future decisions. Therefore, they are not relevant in comparing decision alternatives as they cannot be recovered or changed. Opportunity costs and differential costs, on the other hand, are relevant in comparing decision alternatives as they involve potential gains or losses from different courses of action.

Which of the Following Cost Classifications Would Not Be Considered