When making decisions, it is best to use
A)average costs.
B)fixed costs that would be incurred.
C)unit cost, rather than total cost.
D)variable costs that would be incurred.
E)relevant costs.

Question

Quizplus · Accepted Answer

Relevant costs are the best to use when making decisions as they include only the costs that are relevant to the decision at hand, not including any sunk costs or costs that would not change based on the decision. This provides a more accurate and useful representation of the costs involved in making a decision.

When Making Decisions, It Is Best to Use