As compared to irrelevant cost, occurrence of relevant costs must

A. have high correlation

B. be in future

C. be in past

D. be zero correlated

Answer: Option B

Solution(By Examveda Team)

As compared to irrelevant cost, occurrence of relevant costs must be in future. Relevant costs are affected by a new decision. Irrelevant costs have to be incurred irrespective of a new decision. The relevant costs affect the future cash flows, whereas the irrelevant costs do not affect future cash flows.