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    bjc2223's Avatar
    bjc2223 Posts: 1, Reputation: 1
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    #1

    Nov 8, 2009, 05:34 PM
    Relevant Cost for decision making
    Will you please help me to understand relevant cost and irrelevant cost?
    haider78605's Avatar
    haider78605 Posts: 61, Reputation: 1
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    #2

    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
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