Relevant costs are costs that:
A) do not differ between alternatives.
B) may not be eliminated by choosing one alternative over another.
C) have already been incurred.
D) differ between alternatives.

Question

Quizplus · Accepted Answer

Relevant costs are costs that differ between alternatives and are therefore important in decision making. Options A and C do not fit this definition, and option B is not true for all relevant costs.

Relevant Costs Are Costs That