As compared to irrelevant cost, the occurrence of relevant costs must ___________?
Correct answer: B. be in future
- A. have high correlation
- B. be in future
- C. be in past
- D. be zero correlated
Explanation
Relevant costs concern the future because management can still influence them through its decision. Past costs are sunk costs and are normally irrelevant, even if they appear in the accounting records.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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