When making decisions based upon relevant costs, it is important to ignore
A) Qualitative objective costs
B) Fixed costs allocated based upon a cost driver that does not change
C) Quantitative subjective costs
D) All of the above

Question

Quizplus · Accepted Answer

Fixed costs allocated based upon a cost driver that does not change are considered sunk costs and should not influence decision-making since they do not change with the decision at hand.

When Making Decisions Based Upon Relevant Costs, It Is Important