Answer
No, I don't agree. While variable costs are often relevant in decision-making because they change with the level of activity and can impact the cost of a decision, it's not accurate to say they are always relevant. Fixed costs can also be relevant in certain situations. For example, if a decision involves a choice between two alternative uses of a fixed facility, the fixed costs associated with that facility would be relevant. In decision-making, the relevance of costs depends on the specific context and the decision being considered.
Work Step by Step
No, I don't agree. While variable costs are often relevant in decision-making because they change with the level of activity and can impact the cost of a decision, it's not accurate to say they are always relevant. Fixed costs can also be relevant in certain situations. For example, if a decision involves a choice between two alternative uses of a fixed facility, the fixed costs associated with that facility would be relevant. In decision-making, the relevance of costs depends on the specific context and the decision being considered.
