Writing Essays. by Eleanor Wakefield. There are several vital elements to any successful college essay. This handout. will define those elements and show you how to put them together using an. outline. Following this format will help you keep your thoughts organized and. get your essay underway.
A relevant cost (also called avoidable cost or differential cost) is a cost that differs between alternatives being considered. In order for a cost to be a relevant cost it must be: 1  Future. 2  Cash Flow.  Incremental.
Expenses from previous years are also irrelevant. To recap, relevant costs are the future costs that will differ among alternatives. You might use the past costs to help you predict those future costs, but the past costs are otherwise irrelevant to the decision. Accountants refer to the past costs as sunk costs.