The costs that behaves as irrelevant costs in process of decision making are classified as ___________?
Correct answer: A. past costs
- A. past costs
- B. future costs
- C. expected costs
- D. sunk costsFinance
Explanation
Past costs are sunk costs because they have already been incurred and cannot be altered by a present decision, making them irrelevant. Future costs matter only when they differ among the available alternatives.
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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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