Which of the following BEST describes relevant costs?
A)present costs with similar decision alternatives
B)future costs that differ between competing decision alternatives
C)past costs that correspond solely on competing decision alternatives
D)present costs that differ between competing decision alternatives

Question

Quizplus · Accepted Answer

Relevant costs are future costs that differ between competing decision alternatives. These costs are important to consider because they will be affected directly by the decision made, and will vary depending on which option is chosen. Past costs and present costs with similar decision alternatives are not necessarily relevant to the decision at hand, as they do not differ between the options being considered.

Which of the Following BEST Describes Relevant Costs