Statement I Costs which do not take the form of cash outlays, nor do they appear in the accounting system are known as opportunity cost.
Statement II Costs in the form of depreciation allowances and unpaid interest on the owner's own funds are known as sunk cost.
A. Both staements are correct
B. Both statements are incorrect
C. Statement I is correct and Statement II is incorrect
D. Statement I is incorrect and Statement II is correct
Answer: Option B
This Question Belongs to Management >> Managerial Economics
Related Questions on Managerial Economics
The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis
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