Q725
An expected future cost which diverges in unconventional course of action is known as
A.
partial cost
B.
total cost
C.
irrelevant cost
D.
relevant cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
An expected future cost which diverges in unconventional course of action is known as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.