Learning Objective 10-C1: Describe the use of relevant costs and benefits for short-term decisions.\ Skip to question\ A company must rely on relevant costs pertaining to alternative courses of action rather than historical costs. Out-of-pocket expenses and opportunity costs are relevant because these are avoidable; sunk costs are irrelevant because they result from past decisions and are therefore unavoidable. Managers must also consider the relevant benefits associated with alternative decisions.\ \ Relevant Costs and Benefits\ \ \ Knowledge Check 01\ \ Using the drop-down list, select the correct label for each description.\