Costs which are always relevant in decision making are those costs which are: A. Variable B. Avoidable C. Sunk D. Fixed

Question

Coke Zero

Business

13 November, 11:30

Costs which are always relevant in decision making are those costs which are: A. Variable B. Avoidable C. Sunk D. Fixed

+1

Answers (1)

Know the Answer?

Sharon Baker · Answer 1

B. Avoidable

Explanation:

A relevant cost is a cost that only relates to a specific management decision. This means that a relevant cost is a cost that differs between alternatives being considered. Fixed, Variable and Sunk cost will always exists so they are not relevant when comparing two alternatives.

Avoidable costs, will exists if we choose a particular alternative. So it's relevant for your decision.