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.
Relevant costing is an incremental analysis which means that it considers only relevant costs i.e. costs that differ between alternatives and ignores sunk costs i.e. costs which have been incurred, which cannot be changed and hence are irrelevant to the scenario. Example. Company A manufactures bicycles.