When trying to decide whether a cost is relevant to a decision to outsource office cleaning services, a manager should view a cost as relevant if:

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The relevant costs for outsourcing office cleaning services are those that will change as a result of outsourcing. Anticipated future costs specific to outsourcing, such as the cost of hiring a new vendor, should be considered relevant. Sunk costs (already incurred and cannot be recovered) and historical costs that do not change with outsourcing are not relevant. The precision of the measurement of a cost does not determine its relevance.

When Trying to Decide Whether a Cost Is Relevant to a Decision