When making comparisons using relevant cost and benefit analysis with traditional analysis based on actual costs, the result will depend on the particular circumstances of the firm making the decision.

Question

Quizplus · Accepted Answer

Relevant cost and benefit analysis takes into account only the costs and benefits that are relevant to the decision being made, whereas traditional analysis takes into account all actual costs regardless of relevance. Therefore, the result will vary depending on the circumstances and the factors being considered.

When Making Comparisons Using Relevant Cost and Benefit Analysis with Traditional