ECONOMICS

Detailed explanation-1: -In the process of decision-making, a piece of information is said to be relevant if it is expected to be related to the future data that diverges among the various alternatives.

Detailed explanation-2: -What is a relevant cost? A relevant cost is one that we incur as a direct response to a particular decision. And likewise, a relevant revenue is the same, just instead of a cost, we incur a revenue as a result of a particular decision. This would normally be a management decision.

Detailed explanation-3: -’Relevant costs’ can be defined as any cost relevant to a decision. A matter is relevant if there is a change in cash flow that is caused by the decision. The change in cash flow can be: additional amounts that must be paid.

Detailed explanation-4: -Answer and Explanation: No, all future costs are not relevant in decision making because there are many costs that will occur in the near future but the same are not relevant to the decision making. For example, non-cash expenses, general overheads, etc.