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.
-The firm's variable overhead is $50 per client hour
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, costs associated with solving the personnel training problem, such as consultant fees, travel expenses, or any specific training materials, are relevant because they will directly influence the outcome and costs of the consulting engagement.

A Client in Another Province Needs Immediate Help in Solving