Decision Making Cost Concept: The costs which are to be incurred if such decision is taken and relevant for further processing are known as relevant costs. Also, the incomes and revenues which are directly influenced by such decision are known as relevant revenues. Any other item not covered above would be classified as not relevant for the project decision making respectively. Whether the items given to us would be classified as relevant or not relevant to the given sell or process further decision.

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Chapter 10, Problem 3QS

To determine

Concept introduction:

Decision Making Cost Concept:

The costs which are to be incurred if such decision is taken and relevant for further processing are known as relevant costs. Also, the incomes and revenues which are directly influenced by such decision are known as relevant revenues. Any other item not covered above would be classified as not relevant for the project decision making respectively.

Whether the items given to us would be classified as relevant or not relevant to the given sell or process further decision.

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