The future costs that differ across alternatives are called
A)Sunk costs
B)Irrelevant costs
C)Relevant costs
D)Past costs

Question

Quizplus · Accepted Answer

Relevant costs are the costs that will be incurred in the future and differ between alternatives. These costs are important in making decisions because they will affect the outcome. Sunk costs, past costs that cannot be recovered, and irrelevant costs, costs that do not change between alternatives, are not useful in decision-making. Therefore, the best choice would be to focus on the relevant costs when making a decision.

The Future Costs That Differ Across Alternatives Are Called