Respuesta :
Opportunity costs are irrelevant costs when doing capital budgeting analysis. The given statement is FALSE.
Opportunity cost is the advantage that was lost because a particular option was not selected.
It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
Opportunity costs have a value that can help people and businesses make more lucrative decisions.
Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.
Costs that won't be impacted by a managerial choice are irrelevant costs.
Expenses that will be impacted by a managerial choice are relevant costs.
When you choose one course of action over another, irrelevant expenses won't change in the future.
Sunk expenses, committed costs, and overheads are examples of irrelevant costs because they cannot be avoided.
Hence, the given statement is FALSE.
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