Historical costs are those cost that have been incurred in the past.
Opportunity cost is the benefit to income (inflow) that is lost by not using a limited resource for its best alternative use. Variable costs are those costs that vary with the level of production (outflow).
Opportunity cost is relevant to decision making. Opportunity cost is the benefit to income (inflow) that is lost by not using a limited resource for its best alternative use.
Opportunity cost are relevant to the decision making process.
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