|Overview: Relevant Cost|
|Definition||Costs that have a bearing on a particular decision or strategy.|
|Related Concepts||Sunk Costs|
What are Relevant Costs?
John Spacey, updated on December 07, 2015
Relevant costs are expenditures that are within your power to change in the context of a particular decision or strategy. They exclude costs that are already committed, contractual obligations and expenditures required by laws and regulations such as taxes. Relevant costs also exclude any costs that are beyond your decision authority.
Business CostsThis is the complete list of articles we have written about business costs.
If you enjoyed this page, please consider bookmarking Simplicable.
Business CostsA list of common types of business cost.
A definition of cost escalation with an example.
Cost Reduction Examples
Common examples of cost reduction.
The common types of cost estimate.
Relevant CostA definition of relevant cost with examples.
Detailed examples of how to map out the cost structure of a business.
The definition of cost competition with examples.
An overview of cost goals with examples.
Business RisksA list of common business risks.
Risk TreatmentThe four things that can be done about risk.
Risk MitigationA list of techniques for reducing risk.
Positive RiskThe potential that you'll achieve too much of a good thing.
Any risk that people have a strong aversion too.
Risk vs Opportunity
The surprising similarities between risk and opportunity.
Risk Management vs Contingency Planning
The difference between risk management and contingency planning.
UncertaintyThe common types of uncertainty in decision making and strategy.
The common types of inventory risk.
Business Risk Management
An overview of common business risk management techniques.
TrendingThe most popular articles on Simplicable in the past day.
New ArticlesRecent posts or updates on Simplicable. Site Map
Quality Of Life
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.