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When considering a capital investment, relevant costs for decision making have which THREE of the following features?
Suggested Answer: A
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27 comments · newest first
AR
Aron
11 months ago
Surprised that unavoidable costs are even mentioned!
LI
Lindsey
11 months ago
Cash flows are definitely relevant here!
LI
Lilli
11 months ago
Wait, committed costs? Aren't those already sunk?
JA
Janey
12 months ago
Totally agree, incremental costs matter too!
FR
Francis
12 months ago
They are future costs.
SI
Simona
1 year ago
From what I studied, I’m pretty sure that future costs and incremental costs are correct, but I’m uncertain about the third one.
SH
Shawnda
1 year ago
I practiced a similar question, and I think cash flows are relevant too, but I can't recall if unavoidable costs fit in this context.
SH
Sherron
1 year ago
I think incremental costs are definitely relevant, but I'm a bit confused about committed costs being included.
LE
Lettie
1 year ago
I remember that relevant costs should definitely be future costs, but I'm not sure about the other two.
LE
Leslie
1 year ago
The key here is to identify the three features that are most important for relevant costs in capital investment decisions. I'll methodically go through each option and select the ones that best fit that criteria.
KE
Keneth
1 year ago
Wait, I'm confused. Are cash flows considered relevant costs? I'm not sure if that's one of the right answers here. I'll have to review my notes on relevant costing before answering this.
MA
Margart
1 year ago
Okay, I think I've got this. Future costs, incremental costs, and committed costs - those are the three features that relevant costs for capital investment decisions should have. I'm feeling confident about this one.
JE
Jestine
1 year ago
This seems like a straightforward question about relevant costs for capital investment decisions. I'll need to carefully consider each option and identify the three that best fit the criteria.
GE
Gearldine
1 year ago
Hmm, I'm a bit unsure about this one. I know relevant costs are important for capital investment decisions, but I'm not totally clear on the specific features they should have. I'll need to think this through carefully.
SH
Shonda
2 years ago
This question is making my brain hurt. Why can't they just ask about sunk costs? That's the only thing I'm really confident about in capital investment decisions.
TI
Tiffiny
1 year ago
Let's focus on understanding the concept of relevant costs better.
TW
Twila
1 year ago
Committed costs and unavoidable costs are not relevant for decision making.
GE
Geraldo
1 year ago
I think the relevant costs for decision making are future costs, incremental costs, and cash flows.
LO
Lottie
1 year ago
I agree, sunk costs are easier to understand.
SC
Scarlet
2 years ago
Haha, if only the answer was as easy as 'cash is king'! But of course, there's more to it than that. Gotta consider those incremental costs too.
PA
Paris
1 year ago
Yes, cash flows and future costs are also crucial factors to take into account. It's not just about the initial investment.
AS
Ashton
1 year ago
True, incremental costs are definitely important to consider when making capital investment decisions.
LI
Lindy
2 years ago
I'm pretty sure committed and unavoidable costs are also important, but I'm not 100% sure. Hmm, maybe I should review my notes on this topic again.
JA
Janna
2 years ago
A, C, and E seem like the relevant features for capital investment decision-making. The future costs and incremental cash flows are crucial factors to consider.
DA
Dana
2 years ago
I think relevant costs are cash flows because they affect the company's cash position.
AL
Alfreda
2 years ago
I believe relevant costs are incremental costs.
IV
Ivan
2 years ago
I think relevant costs for decision making are future costs.