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3) List 2 attributes of a relevant cost (2 marks) 1)

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Answer #1

Ans. : Two attributes of relevant cost are as follows :

1. It will make difference when one alternative is to be selected over the competing alternative.

2. These cost are relevant for decision making and these cost are not historical cost ( cost already incurred in past) and sunk cost (cost which are same in each and every alternative). These costs are future cost.

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