Define relevant

cost.

Why are historical costs irrelevant?

Question content area bottom

Part 1

A.

Relevant costs are expected future costs that differ among the alternative courses of action being considered. Historical costs are irrelevant because they are past costs and, therefore, cannot differ among alternative future courses of action.

B.

Relevant costs are past costs that differ among the alternative courses of action being considered. Historical costs are irrelevant because they are future costs and, therefore, cannot differ among alternative future courses of action.

C.

Relevant costs are expected future costs that do not differ among the alternative courses of action being considered. Historical costs are irrelevant because they are past costs and, therefore, differ among alternative future courses of action.

D.

Relevant costs are past costs that do not differ among the alternative courses of action being considered. Historical costs are irrelevant because they are also past costs and, therefore, differ among alternative future courses of action.