A "relevant cost" is best described by which of the following?
A)A factor that restricts production or sales of a product
B)Cost of developing, producing, and delivering a product or service
C)Costs that were incurred in the past and cannot be changed
D)Expected future costs that differ among alternatives

Question

Quizplus · Accepted Answer

Relevant costs are expected future costs that differ among alternatives, and are important in decision-making as they help identify the costs that are relevant to a particular decision. Option A describes a constraint, option B describes the total cost of a product or service, and option C describes sunk costs.

A "Relevant Cost" Is Best Described by Which of the Following