Relevant costs are often referred to as:
A) Unavoidable costs.
B) Differential costs.
C) Sunk costs.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Relevant costs are also known as differential costs because they represent the difference in costs between two or more alternatives. This helps in making decisions about whether to pursue a certain course of action or not. Unavoidable costs and sunk costs are not relevant in decision-making as they cannot be changed or avoided.

Relevant Costs Are Often Referred to As