Question

When planning a trip and deciding to drive your car or take the train, gas online is a:

a.) Relevant Cost
b.) Sunk Cost
c.) Irrelevant Cost

Answer 1

The cost of gasoline when planning a trip and deciding to drive your car or take the train is a relevant cost.

Step-by-step explanation:

The cost of gasoline when planning a trip and deciding to drive your car or take the train is relevant cost.

In this scenario, the cost of gasoline directly affects the decision-making process.

The cost of gasoline is a direct expense that would be incurred when driving the car, and it would not be relevant if you decide to take the train instead.

Therefore, the correct option is (a) Relevant Cost.