A cost that requires a future outlay of cash,and is relevant for current and future decision making,is a(n):
A)Out-of-pocket cost.
B)Sunk cost.
C)Opportunity cost.
D)Operating cost.
E)Uncontrollable cost.

Question

Quizplus · Accepted Answer

Out-of-pocket costs are expenses that require a current or future outlay of cash and are relevant for current and future decision making. Sunk costs are costs that have already been incurred and cannot be recovered, opportunity costs are the potential benefits foregone by choosing one course of action over an alternative, operating costs are expenses related to the ongoing operations of a business, and uncontrollable costs are costs that cannot be influenced by the decisions of management. Therefore, the best choice for a cost that requires a future outlay of cash and is relevant for decision making is out-of-pocket cost.

A Cost That Requires a Future Outlay of Cash,and Is