"Variable costs are always$$ relevant, and fixed costs are always$$ irrelevant." Do you$$ agree? Why?

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Part $1$

A$.$

No$.$ Some variable costs may not differ among the alternatives under consideration$$ and, hence, will be irrelevant. Some fixed costs may differ among the alternatives$$ and, hence, will be relevant.

B$.$

Yes. Variable costs may differ among the alternatives under consideration$$ and, hence, will be relevant. Fixed costs will not differ among the alternatives$$ and, hence, will be irrelevant.

C$.$

Yes. To be relevant for a particular$$ decision, a revenue or cost item must be an expected future revenue or expected future cost. Fixed costs will occur in the future$$ and, hence are relevant. Variable costs may or may not occur in the future so they do not qualify as expected future costs$$ and, hence, wll be irrelevant.

D$.$

No$.$ Variable costs are viewed as a total amount and fixed costs are viewed on a per unit basis. Relevant costing focuses on unit costs and$$ hence, the variable costs will be irrelevant and the total costs will be relevant.