kepner, inc., is considering whether to make-or-buy one of its products. the company rents the machine it uses to make the product. if it decides to buy the product, the machine will no longer be needed. the rent on the machine is which type of cost?

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04-11-2022
Business

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kepner, inc., is considering whether to make-or-buy one of its products. the company rents the machine it uses to make the product. if it decides to buy the product, the machine will no longer be needed. the rent on the machine is which type of cost?

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-11-08T05:18:37-05:00

If it decides to buy the product, the machine will no longer be needed. The rent on the machine is a relevant cost.

' Relevant cost' can be defined as any cost applicable to a decision. A matter is applicable if there's a change in cash inflow that's caused by the decision. The change in cash inflow can be fresh quantities that must be paid.

Relevant cost is a term that describes the changing costs of a particular decision. Businesses use applicable costs to determine if one decision is further cost-effective than another. Relevant cost, also called discriminational cost, is an operation account term describing costs that pertain to a particular decision. Relevant costs are costs that will be affected by a directorial decision. inapplicable costs are those that won't change in the future when you make one decision versus another. exemplifications of inapplicable costs are sunk costs, married costs, or charges as these can not be avoided.

Learn more about relevant costs here: https://brainly.com/question/15320612

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