Which of the following costs are future costs that differ across alternatives?
A)opportunity costs
B)sunk costs
C)relevant costs
D)variable costs

Question

Quizplus · Accepted Answer

Relevant costs are future costs that differ across alternatives and are considered in making decisions. Opportunity costs are also future costs that differ across alternatives, but they represent the value of the next best alternative foregone and may not involve an actual cash payment or outlay. Sunk costs are past costs that are irrelevant for decision making. Variable costs are costs that vary with the level of production or activity and may or may not be relevant to the decision at hand.

Which of the Following Costs Are Future Costs That Differ