For a cost or revenue to be relevant to a particular decision, the cost or revenue must
A)differ between the alternatives being considered.
B)be a past cost.
C)be a future cost.
D)Both a and c above are correct.

Question

Quizplus · Accepted Answer

A cost or revenue must differ between the alternatives being considered to be relevant to a particular decision. Past costs are sunk costs and do not affect future decisions, while future costs are relevant as they can be avoided or minimized by choosing a different alternative. Therefore, both options "a" and "c" above are correct.

For a Cost or Revenue to Be Relevant to a Particular