Which of the following costs are not relevant in a decision to continue or discontinue a segment of the organization?
A) avoidable costs.
B) unavoidable costs.
C) opportunity costs.
D)differential costs.

Question

Quizplus · Accepted Answer

Unavoidable costs, by definition, cannot be eliminated regardless of whether the segment is continued or discontinued. Therefore, they are not relevant in the decision-making process. Relevant costs are those that will change depending on the decision taken, such as avoidable costs, differential costs or opportunity costs.

Which of the Following Costs Are Not Relevant in a Decision