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mihalych1998 [28]
3 years ago
7

In making a decision, relevant costs include: a. unavoidable fixed costs. b. avoidable fixed costs. c. fixed factory overhead co

sts applied to products. d. fixed selling and administrative expenses.
Business
1 answer:
Alika [10]3 years ago
8 0

Answer: Option(b) is correct.

Explanation:

Correct Option: Avoidable fixed costs.

A relevant costs refers to the costs that are related to the particular management decision and these costs will change in future corresponding to the change in decisions. While making a decision, relevant costs includes only avoidable costs and incremental costs which helps businesses. It helps in removing extraneous information from a procedure of decision making.

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