15 Sep

Relevant costs


SAP Business One Finance Training

Relevant costs are decisive costs in cost accounting that are important for a specific business decision. They are also referred to as decision-relevant costs and only occur when a specific alternative course of action is chosen. Irrelevant costs, such as costs already incurred Sunk costs, on the other hand, are not taken into account in the decision-making process. The identification of relevant costs is essential for rational decisions such as the Make or Buy-decision or pricing. Special valuation requirements can be met by add-ons such as the Versino Financial Suite that enable advanced financial analyses.


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