- 4 Marks
ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts
Explains two key concepts of relevant cost used in decision-making.
Question
Relevant Cost
Relevant cost should be used for assessing the economic and financial consequences of any decision made by management. Only relevant cost and benefits should be taken into consideration when evaluating the financial consequences of a decision.
Required:
Explain TWO key concepts of relevant cost.
Find Related Questions by Tags, levels, etc.
- Tags: Costs, Financial Decision-Making, Management Accounting, Relevant Cost
- Level: Level 1
- Topic: Relevant Cost and Revenue
- Series: Nov 2024
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