Answer:
The cost that varies depending on the values of the decision variables is a: ____________
c. relevant cost.
Explanation:
The relevant cost affects a decision outcome. It is not like the sunk cost, which is fixed in total, no matter the decision being made. A relevant cost is also known as a differential or incremental cost, because it makes a different under some decision alternatives. Relevant costs are important to consider whenever a business entity is making a buy or make decision. Relevant costs have their unit costs fixed while the total costs vary according to the alternatives.
