A. past costs
B. future costs
C. expected costs
D. sunk costs
✅ The correct answer is option A.
Costs that behaves as irrelevant costs in process of decision making are classified as past costs. A past cost is money that has already been spent. These funds cannot be recovered, so the related cost is irrelevant for decision-making purposes. A past cost is also known as a sunk cost.
Costs that behaves as irrelevant costs in process of decision making are classified as past costs. A past cost is money that has already been spent. These funds cannot be recovered, so the related cost is irrelevant for decision-making purposes. A past cost is also known as a sunk cost.