Relevant Costs Are Best Described as

Relevant costs are best described as. Future costs that do not differ between alternatives are relevant cost.

Relevant Cost Vs Irrelevant Cost All You Need To Know Accounting And Finance Accounting Basics Learn Accounting

Relevant costs are best described as Select one.

. The cost of obsolete inventory acquired several years ago to be considered in a keep-versus-disposal decision 4. Relevant costs are best described as Select one. Relevant costs are future costs that differ between competing decision alternatives - if a cost does not differ than it is not relevant in decision making.

Explanation- Relevent cost is the cost which is to be incurred if a specified alternative is proceeded withThis cost may include the increase in fixed cost or decrease in variable cost. Sunk costs that differ between alternatives are relevant cost. Which of the following best describes a relevant cost.

Relevant costs are best described as. Future costs that differ between competing decision alternatives. Purchase price of vehicle to be traded in.

Answer A Option b is correct Expected future cost which differs amongst alternatives. Past costs may help you predict and estimate the future costs but the past costs are otherwise irrelevant to the decision. Expected future costs that differs among alternatives C.

The difference in costs in choosing one alternative over another is known as differential cost. Expected future costs that differs among alternatives C. Also by eliminating irrelevant costs from a decision management is prevented from.

Relevant cost in managerial accounting refers to the incremental and avoidable cost of implementing a business decision. The relevant cost concept is extremely useful for eliminating extraneous information from a particular decision-making process. An objective measure of the cost of a business decision is the extent of cash outflows that shall result from its implementation.

Irrelevant to the decision. A factor that restricts production or sales of a product B. Expressed another way relevant costs are the costs that will make a difference when making a decision.

This is used to exclude sunk costs committed costs and non-cash costs from decision making as considering these costs is typically illogical. Future costs that differ between competing decision alternatives. Costs that were incurred in the past and cannot be changed D.

Relevant costs include expected costs to be incurred as well as benefits forgone when choosing one alternative over another known as opportunity costs. Definition of Relevant Costs. A relevant cost is best described by which of the following.

Relevant costs are best described as Select one. The shoes typically sell for 20 per pair. Future costs that differ between competing decision alternatives.

A local childrens football league has contacted Shoeworks and wishes to purchase 50 pairs of sneakers for 15 each. Future costs that differ between competing decision alternatives. Cost of developing producing and delivering a product or service.

A historical cost that is always irrelevant. Which of the following is a sunk cost. The costs associated with each pair of shoes are estimated as 12 of variable costs and 4 of fixed overhead costs.

Fixed costs that may be avoided in the future are referred to as. If a cost is identical under each alternative under consideration within a given. Analyzing this difference is called differential analysis or incremental analysis.

Concept Relevant costing attempts to determine the objective cost of a business decision. Relevant costs are best described as 17 A future costs. When the extra revenue from processing further is less than the extra cost of processing further the.

The costs described in situations I and IV are a. A Quality of the product or service B Delivery schedule of the product or service C Cost charged for the product or service D All of the above Answer. A relevant cost is a future cash cost that is relevant to a particular decision.

As mentioned earlier relevant costs are those that will differ between different alternatives. Cost of developing producing and delivering a product or service Which of the following will decrease the. Future costs that differ between competing decision alternatives.

Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. Consistency demands that a cost that is relevant in one decision be regarded as relevant in other decisions as well. Sunk costs that do not differ between alternatives are relevant cost.

Which of the following best describes a relevant cost. A factor that restricts production or sales of a product B. Future costs that differ between competing decision alternatives C.

Differential revenues and costs also called relevant revenues and costs or incremental revenues and costs represent the difference in revenues and costs among alternative courses of action. A relevant cost is a cost that only relates to a specific management decision and which will change in the future as a result of that decision. Costs that were incurred in the past and cannot be changed D.

Sunk costs are costs that have proven to be unproductive. A relevant cost is best described by which of the following. August 11 2020 in by admin Which of the following best describes relevant cost.

All costs are avoidable in a decision except sunk costs and future costs that do not differ between the alternatives at hand. Expected future costs that differ among alternatives In a special sales order decision the special price must exceed the variable cost of filling the order. Fixed costs that do not differ between two alternatives are.

A sunk cost is described as which of the following. B future costs that differ between competing decision alternatives. Relevant costs are future costs that will differ between two or more alternative actions.

The following are illustrative examples of relevant costs. The costs described in situations III and V are a.

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