Question

What costs are considered “relevant” and which are considered “irrelevant “to a business

decision. Explain why

Answer 1

Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.

Step-by-step explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.