Question

With respect to a decision, a relevant cost is Select one: a. one that does not...

With respect to a decision, a relevant cost is

Select one:

a. one that does not change if the decision not to go ahead is made.

b. one that does not change if the decision to go ahead is made

c. All costs currently incurred by the organisation are relevant

d. one that changes if the decision to go ahead is made

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Homework Answers

Answer #1

Answer d.one that changes if the decision to go ahead is made

Explanation

  • Relevant costs means future cost
  • It has an influence over the decision of decision maker
  • Cost to be incurred due to acceptance of an offer . offer means a new customer from new market or new product haveing distinct feature
  • Relevant cost means the minimum amount to be charges from customer
  • Relevant cost means the minimum price referred to management
  • relevant cost does not include past , sunk i,rrlevant cost.
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