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What is Relevant Costs in Decision Making about?

1. Relevant costs are those that differ between alternatives and will affect the decision being made. They include incremental, avoidable, and opportunity costs. 2. Irrelevant costs are those that remain the same regardless of the alternative chosen, such as sunk costs. 3. Relevant costs are used to evaluate decisions like make-or-buy, where the company decides whether to produce a product internally or purchase from a supplier based on comparing production costs to purchasing price. Special order decis

Author

JOSEPH LEE ZE LOONG Moe

Language

EN