Costs are relevant to a particular decision if they:
A)are variable costs
B)are fixed costs
C)differ across the alternatives being considered
D)remain unchanged across the alternatives being considered

Question

Quizplus · Accepted Answer

Costs are relevant to a particular decision if they differ across the alternatives being considered. In other words, the cost should vary depending on the decision being made. Variables costs can change and are relevant, while fixed costs are not relevant because they will remain the same regardless of the decision made. Therefore, the best choice is C.

Costs Are Relevant to a Particular Decision If They