Relevant Cost

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Dictionary Says

Definition of 'Relevant Cost'

A managerial accounting term that is used to describe costs that are specific to management's decisions. The concept of relevant costs eliminates unnecessary data that could complicate the decision-making process.       
Investopedia Says

Investopedia explains 'Relevant Cost'

Relevant costs are decision specific, meaning that a relevant cost may be important in one situation but irrelevant in another. Examples of when management uses relevant costs can be seen when it is determining whether to sell or keep a business unit, make or buy an item, or accept a special order.
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'Relevant Cost'

  • What Will The Cost Of Living Be In 2012? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/The-Cost-of-Living-in-2012-The-Fundamentals.aspx
    ... Inflation and the cost of food are two relevant examples, and both have soared
    throughout 2011 while the economy has stalled and unemployment has remained ...

  • Financial Statements: Who's In Charge? | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements1.asp
    ... is not perfectly reliable. Again, the imprecise fair value estimate is
    more relevant than historical cost. You can see how some ...

  • 5 States Where You Can Stretch Your Dollar The Furthest ...

    http://financialedge.investopedia.com/financial-edge/0112/5-States-Where-You-Can-Stretch-Your-Dollar-The-Farthest.aspx
    ... How is this relevant? Well, while the government's cost-of-living-index reflects
    both the change in prices for goods and services and the environmental or ...

  • Free Markets: What's The Cost?

    http://www.investopedia.com/articles/economics/08/free-market-regulation.asp
    ... and creates nothing but a big bureaucracy that increases the cost of doing ... Here are
    some still relevant investment considerations now that Facebook has ... ...

  • 99 Cents Only Stores Profits Edge Up

    http://stocks.investopedia.com/stock-analysis/2011/99-Cents-Only-Stores-Profits-Edge-Up-NDN-COST-FDO-DG-DLTR0812.aspx
    ... dollar retailers has widely expanded what was much a far less relevant retail market. ...
    Still, the cost issue for 99 Cents Stores and other dollar retailers will ...

  • Coca-Cola: Right Stock, Wrong Reason

    http://stocks.investopedia.com/stock-analysis/2009/Coca-Cola-Right-Stock-Wrong-Reason-KO-PEP-COST-WMT1126.aspx
    ... Coke intends to "scale [advertising] globally while being locally relevant" and
    "improve ... Costco (Nasdaq: COST) recently dropped Coke products altogether over a ...

  • 10 Ways To Prepare For Nature's Worst Slideshow | Investopedia

    http://www.investopedia.com/slide-show/insurance-prepare-nature-worst/full-replacement-cost-coverage.aspx
    ... These policies will cover the cost of replacing your home or other insured buildings. ...
    Once you have your home coverage with all the relevant policies, you will ...

  • Netflix And Creative Destruction

    http://stocks.investopedia.com/stock-analysis/2011/Netflix-And-Creative-Destruction-NFLX-DISH-LSTZA-AAPL-AMZN-GME-CSTR0921.aspx
    ... starters, this gives management a great deal more granularity on its cost structure
    and profit opportunities, and that could become even more relevant if there ...

  • A Solar-Powered Home: Will It Pay Off?

    http://www.investopedia.com/articles/mortgages-real-estate/10/solar-power-home.asp
    ... The LCOE can then be compared to the cost for electricity from a utility; remember,
    the relevant price is that which occurs during times at or near peak PV ...

  • What You Should Know About Inflation

    http://www.investopedia.com/articles/01/021401.asp
    ... both indicators over an extended period of time that is more relevant to investors ...
    Fed will raise the fed-funds target rate to increase the cost of borrowing ...

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