Скачать или смотреть CMA P11154 YT MCQ C1120 09 Differential Analysis Relevant Cost and Irrelevant Cost 07 Part 1 – Se

Relevant Costs and Benefits

A relevant cost is a cost that differs between alternatives.
A relevant benefit is a benefit that differs between alternatives.

Identifying Relevant Costs
An avoidable cost is a cost that can be eliminated, in whole or in part, by choosing one alternative over another. Avoidable costs are relevant costs. Unavoidable costs are irrelevant costs.

Identifying Relevant Costs
Two broad categories of costs are never relevant in any decision. They include:
Sunk costs.
A future cost that does not differ between the alternatives.

Different Costs for Different Purposes
Costs that are relevant in one decision situation may not be relevant in another context. Thus, in each decision situation, the manager must examine the data at hand and isolate the relevant costs.