Question

Costs which are pertinent for decision making are termed as ________________.

• A. Relevant costs
• B. Differential costs
• C. Marginal costs
• D. Operating costs

Answer 1

Answer: (A)

Relevant costs

Relevant Costing and Costing for Decision Making. In management accounting, notion of relevant costing has great significance because these costs are pertinent with respect to a particular decision. Relevant costs are also termed as differential costs.