A cost is not relevant for decision making if it:
A) Does not differ for each option available to the decision maker.
B) Changes from period to period.
C) Is a future cost.
D) Is a mixed cost.
E) Is a fixed cost.

Question

Quizplus · Accepted Answer

A cost that does not differ for each option available to the decision maker is not relevant because it will not affect the decision between alternatives. Only costs that vary between options need to be considered when making a decision.

A Cost Is Not Relevant for Decision Making If It