Which of the following will always be a relevant cost?
A) Sunk cost
B) Fixed cost
C) Variable cost
D) Opportunity cost

Question

Quizplus · Accepted Answer

Opportunity cost is always relevant when making a decision because it is the cost of the next best alternative that must be given up in order to choose a certain option. Sunk costs are not relevant because they are already incurred and cannot be changed, while fixed and variable costs may or may not be relevant depending on the specific decision being made.

Which of the Following Will Always Be a Relevant Cost