Future costs are relevant in decision making when they ________.
A)exceed future revenues
B)are not based on estimates
C)differ between alternative courses of action
D)are the same between alternative courses of action

Question

Quizplus · Accepted Answer

Future costs are relevant in decision making when they differ between alternative courses of action. This is because the decision will have an impact on the future costs and it is important to compare the costs of different options to make an informed decision. If the costs are the same between alternative courses of action, then they are not relevant in the decision-making process. If future costs exceed future revenues, it may also be relevant as it can impact the financial viability of the decision.

Future Costs Are Relevant in Decision Making When They ________