A client in another province needs immediate help in solving a personnel training problem in the shipping department. Match each activity on the basis of its relationship with this consulting engagement. Items may have multiple classifications.
-All staff members receive $1,000 per diem for travel
A) Irrelevant Costs
B) Opportunity Cost
C) Opportunity, Irrelevant Costs
D) Sunk Costs
E) Relevant Costs
F) Sunk, Irrelevant Costs

Question

Quizplus · Accepted Answer

Relevant Costs are costs that will be directly affected by the decision at hand, such as the $1,000 per diem for travel for staff members to solve the client's problem. These costs are relevant because they will only occur if the consulting engagement happens.

A Client in Another Province Needs Immediate Help in Solving