Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 11 - Decision Making and Relevant Information - Assignment Material - Questions - Page 458: 11-2

Answer

Relevant costs are the costs that matter for future decisions because they vary between different choices. On the other hand, historical costs, which are in the past, are not important for making future decisions as they cannot change based on different choices.

Work Step by Step

Relevant costs are the costs that matter for future decisions because they vary between different choices. On the other hand, historical costs, which are in the past, are not important for making future decisions as they cannot change based on different choices.
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