A "relevant cost" is best described by which of the following? A. Cost of developing, producing, and delivering a product or service B. Costs that were incurred in the past and cannot be changed C. Expected future costs that differ among alternatives D. A factor that restricts production or sales of a product

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Answer: Option C

   

Explanation: In simple words, relevant cost refers to the cost that depicts the difference between the alternatives being considered. It is important to consider relevant  cost  because any error can lead to unsound business decisions.

A cost must be made in future, should have a cash flow and has to be incremental to be considered as a relevant cost. Analyzing relevant cost helps an organisation to save its time and efforts and is a major factor in decision making.