Business function costs are ________.
A) the sum of all fixed costs, sunk costs, and opportunity costs in a particular business function of the value chain
B) the sum of all variable and fixed costs in a particular business function of the value chain
C) the sum of all variable and fixed costs in all business functions of the value chain
D) the sum of all fixed costs, sunk costs, and opportunity costs in all business functions of the value chain

Question

Quizplus · Accepted Answer

Business function costs refer to the sum of all variable and fixed costs in a particular business function of the value chain. Option A includes sunk and opportunity costs which are not considered as part of business function costs. Option C includes costs of all business functions which go beyond the scope of the question. Option D includes sunk and opportunity costs which are not part of business function costs.

Business Function Costs Are ________