Which of the following is true of relevant costs?
A)Relevant costs are future costs that differ across alternatives.
B)Relevant costs are sunk costs that alter future decisions.
C)Relevant costs have no effect on decision making.
D)Relevant costs are past costs that do not differ from one alternative to another.

Question

Quizplus · Accepted Answer

Relevant costs are future costs that are different across various alternatives. These costs are important to consider because they can have an impact on the decision-making process. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered, and therefore should not be considered when making decisions about the future.

Which of the Following Is True of Relevant Costs