Estimated future costs that differ between alternative courses of action are termed __________ costs in management decision analysis.
A) variable overhead
B) relevant
C) absorption
D) replacement

Question

Quizplus · Accepted Answer

Relevant costs are those costs that are pertinent to a specific decision or potential course of action. In management decision analysis, it is important to focus on relevant costs, as they are the costs that will be affected by the decision and can help provide a clearer picture of the potential outcomes. Variable overhead, absorption, and replacement costs may be important to consider in certain contexts, but they are not necessarily relevant to all management decision analyses.

Estimated Future Costs That Differ Between Alternative Courses of Action