When calculating relevant costs and benefits in the decision-making framework, if an option or alternative is being considered and it is expected that there will be no changes to the existing capacity, which of the following costs would not change in the decision to choose one option over the other?
A) Total costs
B) Variable costs
C) Relevant costs
D) Fixed costs

Question

Quizplus · Accepted Answer

When calculating relevant costs and benefits in the decision-making framework, if an option or alternative is being considered and it is expected that there will be no changes to the existing capacity, fixed costs would not change in the decision to choose one option over the other.

When Calculating Relevant Costs and Benefits in the Decision-Making Framework