In accounting, what is meant by relevant costs?
The company Billy’s makes cheese worth $10,000 per month. Maintenance cost for machinery is $3,000, $2,000 for material, $2,500 for labor, and $1,500 for miscellaneous costs. So, the Billy’s might think of discontinuing the cheese unit. Billy’s might continue with cheese production if the expenses are lower, like $ 7,500. Note that additional fixed costs …