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Which of the following types of cost are relevant to making financial decisions?

A. opportunity cost

B. sunk cost

C. opportunity cost and material cost only

D. sunk cost and material cost only

E. material cost

Cost Accounting Financial Projections Financial Reporting Cost Engineering Project Management
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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2017/04/20
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It has to be C. Opportunity Cost and Material costs, as these are impacted by management actions/inactions. Sunk costs are indifferent to any routine financial decisions.

Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+

C. opportunity cost and material cost only

Krishna KHASANIS PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Since question is one of financial decisions,  I prefer to go with option - C .

Mohamed Kamal
by Mohamed Kamal , Cost Control Manager , China State Construction Engineering Corporation Ltd. (Egypt)

it will be (C) i think the material and opportunity cost

Zaferullah Sharief, PMP®
by Zaferullah Sharief, PMP® , Project Manager , Huawei Technologies

Option C = opportunity cost and material cost only is the correct answer. 

Sunk Cost are the cost that Project has already spent/expended which cannot be recovered.

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