Relevant Costing Flashcards by Helder Kiala

Q

What’s a relevant cost?

A

Future cashflows that will be changed as a result of a decision.

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Q

What makes a cost relevant?

A

Cashflow changes
Avoidable/uncontrollable
Opportunity cost

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Q

What does it mean when a cost isn’t relevant?

A

It’s irrelevant.

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Q

A

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