Answer:
Step-by-step explanation:
To determine whether a cost is relevant, we need to consider the criteria mentioned in the multiple-choice options.
a. A cost being sunk means that it cannot be recovered or changed by any future decision. Sunk costs are typically considered irrelevant because they are already incurred and cannot be changed. Therefore, option a is incorrect.
b. A cost not being changed is not a requirement for it to be considered relevant. Costs can still be relevant even if they change. So, option b is incorrect.
c. A relevant cost can be positive or negative. It refers to any cost that will change as a result of a particular decision. Both positive and negative costs can be relevant, depending on the specific circumstances. Therefore, option c is incorrect.
d. The correct answer is option d: A relevant cost must make a difference. This means that the cost will have an impact on the decision being made. For example, if a company is considering whether to purchase a new machine, the cost of the machine would be relevant because it would make a difference in the decision-making process.
In summary, for a cost to be considered relevant, it must make a difference in the decision being made. It can be positive or negative, and it does not have to be sunk or unchangeable.