Costs that are always relevant in decision-making are:
A)avoidable costs.
B)future costs.
C)fixed costs.
D)sunk costs.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be eliminated or avoided if a particular decision is made. Therefore, they are always relevant in decision-making as they can impact the overall cost of a decision. Future costs are also important, but they are not always certain and can be estimated based on assumptions and projections. Fixed costs, on the other hand, remain constant regardless of the decision made and sunk costs are irrelevant as they are costs that have already been incurred and cannot be recovered.

Costs That Are Always Relevant in Decision-Making Are