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The most relevant costs that should be used in decision making are?
Wiki User
∙ 11y ago
dadada
Wiki User
∙ 11y ago
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Are sunk costs ever relevant for decision-making purposes?
NO, its cost which was wasted in past we can not recover it so it is not relevant for decision making.
Are marginal costs relevant costs?
If marginal costs are relevant for specific situation or specific decision making scenario then marginal costs are relevant costs otherwise marginal costs can be irrelevant.
What are the differences between relevant cost and irrelevant cost?
In decision making process those cost which are effected from the decision under consideration those costs are called relevent costs and those costs which have no impact on decision making of specific project are called irrelevent costs.
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Which of the following costs are NEVER relevant in the decision-making process?
the record of the school's sports programs SAM<3
Are sunk costs ever relevant for decision-making purposes?
NO, its cost which was wasted in past we can not recover it so it is not relevant for decision making.
Are marginal costs relevant costs?
If marginal costs are relevant for specific situation or specific decision making scenario then marginal costs are relevant costs otherwise marginal costs can be irrelevant.
All future costs are relevant in decision making?
Future costs are relevant in decision making if the decision will affect their amounts. For example, suppose you're trying to decide whether to drive to work or take the bus. Relevant future costs information includes (1) the cost of gasoline and tolls needed to drive to and from work and (2) the cost of bus fare because both of these costs depend on your decision. However, future costs that won't change - such next month's rent on your apartment - are not relevant because, regardless of your decision, they will not change. Note that past costs are never relevant in decision making.
Are all future cost are relevant in decision making?
Future costs are relevant in decision making if the decision will affect their amounts. For example, suppose you're trying to decide whether to drive to work or take the bus. Relevant future costs information includes (1) the cost of gasoline and tolls needed to drive to and from work and (2) the cost of bus fare because both of these costs depend on your decision. However, future costs that won't change - such next month's rent on your apartment - are not relevant because, regardless of your decision, they will not change. Note that past costs are never relevant in decision making.
What are the differences between relevant cost and irrelevant cost?
In decision making process those cost which are effected from the decision under consideration those costs are called relevent costs and those costs which have no impact on decision making of specific project are called irrelevent costs.
What costs are relevant in the decision to shut down the Clayton facility?
Which Costs Are Relevant In The Decision To Shut Down The Clayton Facility
Is variable cost a relevant cost?
No. If a variable cost does not differ between alternatives than it is irrelevant.
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Which of the following costs are NEVER relevant in the decision-making process?
the record of the school's sports programs SAM<3
The book value of old equipment is not a relevant cost in a decision?
That's correct. The book value of old equipment represents its historical cost and accumulated depreciation, which is not relevant for decision-making because it does not reflect the current market value or the future costs and benefits associated with the equipment. When making decisions, it's important to focus on relevant future costs and benefits rather than past historical costs.
Why are variable costs more relevant than fixed costs in short-term decision making?
Fixed costs are costs that cannot be changed in the short-term without causing significant harm to the organization. Because you cannot change them, you should not consider them in comparative analysis of alternatives.
In management accounting what are relevant costs?
Relevant cost is that cost which will be affected due to the decision company going to make.
