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Leila Aldandachi
on Nov 19, 2024

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Variable costs are always relevant costs in decisions.

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor expenses.

Relevant Costs

Relevant costs are those that will be affected by a decision in a specific situation and are considered when making financial or other managerial decisions.

  • Examine the pertinence of variable and fixed costs in specific situations requiring decisions.
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Edgar GarciaNov 19, 2024
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