ECONOMICS

Detailed explanation-1: -An avoidable cost is a cost that can be eliminated, in whole or in part, by choosing one alternative over another. Avoidable costs are relevant costs.

Detailed explanation-2: -The variable costs are not always relevant costs, because the variable costs are relevant or irrelevant depending on other factors. If under different alternatives the variable cost remains the same, then it will not be considered a relevant cost.

Detailed explanation-3: -A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to: provide relevant revenue and cost data about each course of action.

Detailed explanation-4: -Incremental analysis helps to determine the cost implications of two alternatives. It is also known as the relevant cost approach, marginal analysis, or differential analysis.