Each item included in the relevant-cost analysis should differ according to the alternative being considered and be an expected future revenue or cost.

Question

Quizplus · Accepted Answer

The purpose of relevant-cost analysis is to identify and compare the expected future revenues and costs of different alternatives being considered. Therefore, each item included in the analysis should be relevant to the specific alternative being considered and should represent an expected future revenue or cost. Any items that are not relevant to the decision at hand should be excluded from the analysis.

Each Item Included in the Relevant-Cost Analysis Should Differ According