PDA

View Full Version : Relevant Cost for decision making


bjc2223
Nov 8, 2009, 05:34 PM
Will you please help me to understand relevant cost and irrelevant cost?

haider78605
Nov 10, 2009, 10:35 AM
Any cost whether fixed of variable has a impact on future decision making is relevant otherwise it is irrelevant. You had bought material X 2 months ago for $10 but today it is traded for $8 and you receive an order for that material to be used as input the relevant cost is $8 not your cost $10