Variable costs are relevant to a special decision when those variable costs differ between alternatives.

Question

Quizplus · Accepted Answer

Variable costs are only relevant in decision-making if they vary between the available alternatives, as these costs can help determine which alternative is the most cost-effective. Fixed costs, on the other hand, are generally not relevant to these special decisions, as they do not change regardless of the chosen alternative.

Variable Costs Are Relevant to a Special Decision When Those