When making a decision to buy a new computer, the irrelevant costs are the
A) differential costs.
B) relevant costs.
C) qualitative characteristics.
D) sunk costs.

Question

Quizplus · Accepted Answer

Irrelevant costs are costs that have already been incurred and cannot be changed, such as sunk costs. Differential costs are costs that will change depending on the decision made, while relevant costs are those that will have an impact on the decision being made. Qualitative characteristics are subjective and not measurable in monetary terms, so they are also irrelevant in this context. Therefore, the best choice is D, as sunk costs do not play a role in the decision-making process for buying a new computer.

When Making a Decision to Buy a New Computer, the Irrelevant