When evaluating alternatives,what type of costs should be considered?
A) Relevant costs
B) Sunk costs
C) Prevention costs
D) Fixed costs

Question

Quizplus · Accepted Answer

When evaluating alternatives, relevant costs should be considered as they are the costs that will be directly affected by the decision being made. Sunk costs are irrelevant as they cannot be recovered, prevention costs are not directly impacted by the decision, and fixed costs are not necessarily relevant unless they will be directly affected by the decision being made.

When Evaluating Alternatives,what Type of Costs Should Be Considered