A relevant cost is a cost that is a(n):Group of answer choicesfuture costnon-cash expensesunk costpast cost
Question
A relevant cost is a cost that is a(n):
- Group of answer choices
- future cost
- non-cash expense
- sunk cost
- past cost
Solution
A relevant cost is a future cost.
Here's why:
-
Relevant costs are costs that should be considered when making decisions. They are costs that will change depending on the decision you make.
-
Future costs are costs that will be incurred in the future as a result of a decision made now. These costs are relevant because they can be changed or avoided depending on the decision you make.
-
Non-cash expenses, sunk costs, and past costs are not relevant costs. Non-cash expenses are costs that do not involve cash outflows and cannot be changed or avoided. Sunk costs are costs that have already been incurred and cannot be recovered, so they should not affect future decisions. Past costs are costs that have already been incurred, so they cannot be changed or avoided.
Therefore, a relevant cost is a future cost because it can be changed or avoided depending on the decision
Similar Questions
A relevant cost is a cost that is a(n):Group of answer choicesfuture costnon-cash expensesunk costpast cost
Telephone costs are USUALLY classified as:Group of answer choicesvariable costs.fixed costs.irrelevant costs.mixed costs.
Multiple Choice QuestionCosts developed which identify what products should cost are calledMultiple choice question.standard costs.product costs.actual costs.
costs, also called differential costs, are the additional costs from selecting a certain course of action.
Cost paid in money to hire a resource isGroup of answer choicesan alternative-use cost.an implicit cost.an explicit cost.economic profit.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.