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Published by Vu Manh Cuong
Managerial Accounting Garrison
Managerial Accounting Garrison

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Published by: Vu Manh Cuong on Sep 24, 2013
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Relevant Costs for 
Decision Making
5/10/04
Chapter 13
 
© The McGraw-Hill Companies, Inc., 2003
 McGraw-Hill/Irwin
Cost Concepts for DecisionMaking
 A
relevant cost
 is a cost thatdiffers between alternatives.
 
© The McGraw-Hill Companies, Inc., 2003
 McGraw-Hill/Irwin
Identifying Relevant Costs
Costs that can be eliminated (in whole or inpart) by choosing one alternative over another areavoidablecosts. Avoidable costsare relevant costs.Unavoidable costs are never relevant andinclude:
Sunk costs.
Future costs that 
do not differ 
 between thealternatives.

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