Relevant costs:
A) are sunk costs.
B) are costs that differ among alternatives.
C) are unavoidable.
D) can not be opportunity costs.

Question

Quizplus · Accepted Answer

Relevant costs are costs that differ among alternatives. Sunk costs are not relevant because they have already been incurred and cannot be changed. Unavoidable costs may or may not be relevant, depending on whether they differ among alternatives. Opportunity costs are relevant costs, as they represent the value of a forgone alternative.

Relevant Costs