Which of the following do relevant costs exclude when deciding whether to discontinue a segment of a business?
A)Variable marketing costs per unit of product sold
B)Cost of goods sold
C)Future administrative costs that will continue
D)Fixed supervision costs that can be eliminated

Question

Quizplus · Accepted Answer

Relevant costs for decision-making exclude costs that will not change as a result of the decision. Future administrative costs that will continue regardless of the decision are not relevant because they do not change if the segment is discontinued.

Which of the Following Do Relevant Costs Exclude When Deciding