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.
-Round-trip transportation for each staff member is $500
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. In this scenario, the cost of round-trip transportation for each staff member is a relevant cost because it is a future cost that will be incurred as a direct result of deciding to undertake the consulting engagement.

A Client in Another Province Needs Immediate Help in Solving