The best way to avoid misidentification of relevant costs is to focus on ________.
A) expected future costs that differ among the alternatives
B) historical costs
C) unit fixed costs
D) total unit costs

Question

Quizplus · Accepted Answer

Focusing on expected future costs that differ among the alternatives helps to identify the relevant costs that will impact the decision. Historical costs may not be relevant to the decision as they do not reflect the current situation. Unit fixed costs and total unit costs may also not be relevant as they do not differentiate between alternatives.

The Best Way to Avoid Misidentification of Relevant Costs Is