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20 May, 09:26

Costs that will differ between alternatives and influence the outcome of a decision are

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  1. 20 May, 10:44
    0
    Relevant costs.

    Explanation:

    Relevant costs also called differential costs are avertible costs that is sustained by an organization when creating distinct business decisions for the growth of the company.

    Relevant costs are divided into two categories:

    1) Future costs:

    Future costs can be defined as the plausible quantification of the amount of an impending expenses or expenditure.

    2) Opportunity costs:

    Opportunity cost refers to the value of what has to be given up inorder to go for a different thing.

    A relevant cost can also be described as a cost that is said to be different between substitutes.
  2. 20 May, 12:40
    0
    Relevant costs

    Explanation:

    Relevant costs refer to avoidable costs which are incurred only when specific business decisions are being made. An example of relevant cost is a cost that is employed to decide whether a business unit should be sold or kept.

    A relevant cost is the opposite of an irrelevant cost.

    Irrelevant costs are costs that are not relevant or useful when decision is being made and they do not differ between the alternatives. Irrelevant costs include absorbed fixed cost, committed cost, and sunk costs.

    Therefore, costs that will differ between alternatives and influence the outcome of a decision are relevant costs.
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