The relevant costs are classified in relevance concepts as ____________?
Correct answer: A. expected future costs
- A. expected future costs
- B. serial costs
- C. parallel costs
- D. abnormal costs
Explanation
A relevant cost must be an expected future cost that differs between the alternatives being considered. Costs already incurred or costs identical under every option do not affect the decision.
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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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