An outlay cost is not relevant if it
A) Does not differ among alternatives
B) Is under $10,000 or less than 1% of sales
C) Is not an opportunity cost
D) Is not a cash outlay

Question

Quizplus · Accepted Answer

Outlay costs that do not differ among alternatives are not relevant because they do not affect the decision between the alternatives. Relevant costs are costs that are affected by the decision and can vary between alternatives.

An Outlay Cost Is Not Relevant If It