Some cost may be shared cost so, therefore, would not be relevant, even within the relevant range of production.
Past cost are sunk cost and not relevant to the decision.
Relevant cost are those types of costs that would differ among various courses of actions. For example, if there are two options available to a manager, the manager would consider in his or her decision only those cost that differ among the two options. Shared costs would not be considered since they are not relevant to the decision.
Relevant cost only refer to those cost that vary among the options. Some fixed cost may vary among the alternatives and would be relevant, but not all fixed cost are relevant.
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