Question

​Ace Cleaning Service is considering expanding into one or more new market areas. Which costs are relevant to Ace's decision on​ whether to expand?

Answer 1

variable and opportunity costs

Step-by-step explanation:

In simple words, whenever an organisation is planning to expand into new market they should taken into account only those costs which will increase or decrease due to such operations success or failures, therefore, sunk costs would be irrelevant.

Variable cost refers to the cost that increase or decrease with level of operations while opportunity costs relates to the cost profits foregone due to choosing best alternative over second best alternative.