[1] Also, ignoring irrelevant data in analysis can save time and effort.
It requires an additional $0.5 million to complete construction.
Because of a downturn in the real estate market, the finished building will not fetch its original intended price, and is expected to sell for only $1.2 million.
A managerial accounting term for costs that are specific to management's decisions.
The concept of relevant costs eliminates unnecessary data that could complicate the decision-making process.