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.