Which of the following statements is false?

Multiple Choice

Sunk costs have an impact on future cash flows; therefore, they are relevant.

Opportunity costs represent economic benefits that are forgone as a result of pursuing some course of action.

An advantage of outsourcing is that, by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale, resulting in higher quality and lower cost compared to each company producing its own parts,

An avoidable cost is a cost that can be eliminated by choosing one alternative over another; therefore, it is relevant.