Avoidable costs are those costs that
A)are variable.
B)are fixed.
C)occur only when a particular alternative.
D)occur in the past and relate to decisions being made.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be avoided if a particular alternative is not chosen. In other words, they are costs that are only incurred if a certain decision is made. Therefore, option C is the correct answer. Options A and B refer to variable and fixed costs, respectively, which are not necessarily avoidable. Option D is incorrect as avoidable costs relate to future decisions, not past ones.

Avoidable Costs Are Those Costs That