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Costs that behaves as irrelevant costs in process of decision making are classified as
Answer & Solution
Correct Answer:
Option
A
Costs that behaves as irrelevant costs in process of decision making are classified as past costs. A past cost is money that has already been spent. These funds cannot be recovered, so the related cost is irrelevant for decision-making purposes. A past cost is also known as a sunk cost.
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