Tri-County, Inc. is studying whether to expand operations by adding a new product line. Which of the following choices correctly denotes the costs that should be considered in this decision?
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E

Question

Tri-County, Inc. is studying whether to expand operations by adding a new product line. Which of the following choices correctly denotes the costs that should be considered in this decision? 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Quizplus · Accepted Answer

Choice C includes relevant costs that should be considered when making a decision about expanding operations by adding a new product line. These costs include incremental costs such as direct materials, direct labor, variable overhead, and any additional fixed costs specifically associated with the new product line. It also excludes irrelevant costs such as sunk costs, which should not be considered in this decision-making process.