Which of the following is considered a relevant cost when undertaking an investment analysis?

Question

Quizplus · Accepted Answer

A relevant cost for investment analysis is an opportunity cost. This is because the opportunity cost represents the cost incurred by pursuing one investment option over another. Sunk costs, common future costs, interest payments, and standard costs are not relevant costs for investment analysis because they are either already incurred or do not vary between investment options.

Which of the Following Is Considered a Relevant Cost When