relevant costs for decision making
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differential costs
future costs that change as a result of a decision
unavoidable cost
irrelevant cost
special order
a one-time order that is not considered part of the company's normal ongoing business
opportunity costs
benefits lost/forfeited by selecting one alternative rather than another
avoidable cost
can be eliminated by choosing one alternative over another. relevant costs
relevant cost
differs between alternatives
sunk costs
past costs, or costs that won't change with decision
incremental costs
relevant in a special order
never relevant in any decision
sunk and future costs
fixed overhead costs
would not be affected by the order
