ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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benefit
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cost
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payback period
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analysis
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Detailed explanation-1: -Relevant cost is a management accounting term that describes avoidable costs incurred when making specific business decisions.
Detailed explanation-2: -What Is Opportunity Cost? The opportunity cost (also called an implicit cost) of a decision is the value of what you will lose or miss out on when choosing one possibility over another.
Detailed explanation-3: -Relevant cost, sometimes called differential cost, refers to the financial costs that result from a business decision.
Detailed explanation-4: -Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.
Detailed explanation-5: -The amount that a business charges customers per unit of the product or service it sells is called the price. The amount it takes for a company to produce the product or service it sells is called the cost.