This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 15-2215-33 (continued)Then, you will want to consider the relevant costs of this decision.For a cost to be relevant, it must be both a future cost necessary tocarry out one or more decision alternative and affected by the decisionalternative chosen. Since you actually have to make several decisionsin this case, a cost which is relevant to one decision may or may notbe relevant to another. For example, the costs of gas, oil, and thebasic fee of a rental car are relevant costs when you consider thepreferred type of transportation. However, those costs may not berelevant to choosing between staying in a motel or condominium unlessone type of accommodation is much further from the beach or from whereyour friends are staying than the other, necessitating much moredriving. In this case, the costs of gas, oil, and any mileage chargeassociated with the rental fee would be relevant because they would...
View Full Document
This homework help was uploaded on 04/08/2008 for the course ACC 102 taught by Professor Drucker during the Fall '07 term at Coastal Carolina University.
- Fall '07