A relevant cost in determining whether to take the train to Phoenix or fly to Phoenix would be
A)the cost of a housesitter for your pets.
B)the cost of the plane ticket.
C)the cost of the hotel room in Phoenix.
D)the cost of the rental car in Phoenix.

Question

Quizplus · Accepted Answer

The cost of the plane ticket is a relevant cost because it directly affects the decision of whether to take the train or fly to Phoenix. The other options, such as the cost of a housesitter or the cost of a hotel room or rental car in Phoenix, may still be incurred regardless of whether one chooses to take the train or fly, so they are not relevant costs in this decision.

A Relevant Cost in Determining Whether to Take the Train