Choice "C" is correct. The relevance of a particular cost to a decision is determined by potential effect on the decision. Relevant costs are expected future costs that vary with the action taken. All other costs are assumed to be constant and thus have no effect on the decision. The relevance of a particular cost to a decision is not determined by:
d. | Riskiness of the decision. |
b. | Number of decision variables. |
a. | Accuracy of the cost. |
