Relevant costs are

Practice Question 15 options:

a)Avoidable, future and measured by profit

b)Unavoidable, future and measured by cash

c)Unavoidable, future and measured by profit

d)Avoidable, future and measured by cash

Consider a decision facing a firm of either accepting or rejecting a special offer for one of its products. Which of the following costs is NOT relevant?

Practice Question 16 options:

a)Direct materials.

b)Fixed overhead that will be avoided if the special offer is accepted.

c)Common fixed overhead that will continue if the special offer is NOT accepted.

d)Variable overhead.