Costs that are always relevant in decision-making are:
A) future costs.
B) avoidable costs.
C) sunk costs.
D) fixed costs.

Question

Quizplus · Accepted Answer

Avoidable costs are relevant in decision-making because they are costs that can be avoided or eliminated if a particular decision is made. Future costs are also relevant because they represent costs that will be incurred in the future as a result of a particular decision. Sunk costs, on the other hand, are not relevant because they are costs that have already been incurred and cannot be recovered. Fixed costs may also not be relevant depending on the specific decision being made.

Costs That Are Always Relevant in Decision-Making Are