Relevant costs are
A)all fixed and variable costs.
B)all costs that would be incurred within the relevant range of production.
C)past costs that are expected to be different in the future.
D)anticipated future costs that will differ among various alternatives.

Question

Quizplus · Accepted Answer

Relevant costs are the costs that will differ among various alternatives in the future. Past costs are sunk costs and cannot be changed. All fixed and variable costs and costs that would be incurred within the relevant range of production are not necessarily relevant to decision making. Therefore, anticipated future costs that will differ among various alternatives are the best answer.

Relevant Costs Are