Future costs that differ across alternatives describe
A)relevant costs.
B)target cost.
C)full costs.
D)activity-based costs.

Question

Quizplus · Accepted Answer

Relevant costs are future costs that differ across alternatives and are relevant in decision-making because they can affect future cash flows. Target cost refers to a cost that management desires to achieve in the future, full costs refer to all costs associated with producing a product or delivering a service, and activity-based costs refer to costs that are assigned based on the activities required to produce a product or deliver a service.

Future Costs That Differ Across Alternatives Describe