When deciding whether to discontinue a segment of a business, relevant costs include all of the following EXCEPT:
A)fixed supervision costs that can be eliminated
B)variable marketing costs per unit of product sold
C)cost of goods sold
D)future administrative costs that will continue

Question

Quizplus · Accepted Answer

Future administrative costs that will continue are not relevant because they will not be affected by the decision to discontinue the segment.

When Deciding Whether to Discontinue a Segment of a Business