Question

Iv). A cost that does not affect a decision is called an

Answer 1

Answer:

past cost

Explanation:

I hope this will help uhhh

Answer 2

Answer:

A cost that does not affect a decision is called an Irrelevant cost.

Explanation:

• A cost which does not affect a decision is called as an Irrelevant cost.
• Irrelevant costs are the costs which is positive or negative that will not be affected by a decision (management decision).
• Irrelevant cost such as- sunk costs, fixed overhead are ignored when that particular decision is made.
• Irrelevant costs do not change in future when we make any decision.
• Example of irrelevant cost are- the salary of an investor.
• Another example of irrelevant cost are- committed costs or overheads or sunk cost.
• Sunk cost means the cost that has already been incurred and that cannot be recovered.
• In economic decision making that is sunk cost are treated as bygones and then they are not considered.

Hence, a cost that does not affect a decision is called an irrelevant cost.

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