Asked by
Leila Aldandachi
on Nov 19, 2024Verified
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.
Verified Answer
EG
Learning Objectives
- Examine the pertinence of variable and fixed costs in specific situations requiring decisions.