Question

When working on a decision between two options, only _______________ matter in the analysis. A) avoidable...

When working on a decision between two options, only _______________ matter in the analysis.

A) avoidable

B) budgeted costs

C) unavoidable

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Answer #1

Solution:

When working on a decision between two options, only "Avoidable" costs matter in the analysis.

This is because avoidable costs are relevant costs for the decision taking and unavoidable cost are not relevant as these will occur in both the options.

Hence Option "A" is correct.

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