When existing labor is already being fully utilized, any additional labor requirement may be met either by offering overtime to current staff or by hiring new employees. The relevant cost of direct labor in this scenario shall be the total cost of additional labor hours required for the proposed business action.

What is included in relevant cost?

A relevant cost is a cost that only relates to a specific management decision, and which will change in the future as a result of that decision. Also, by eliminating irrelevant costs from a decision, management is prevented from focusing on information that might otherwise incorrectly affect its decision.

Are salaries a relevant cost?

Relevant costs are those costs that will make a difference in a decision. Relevant costs are future costs that will differ among alternatives. The salaries of the product line managers and other employees whose salaries will be eliminated are relevant to the decision.

What type of word is relevant?

Relevance is simply the noun form of the adjective “relevant,” which means “important to the matter at hand.” Artists and politicians are always worried about their relevance. If they are no longer relevant, they may not keep their job. Someone without relevance might be called “irrelevant.”

What is a good sentence for relevant?

Relevant Sentence Examples Some children like to think that the rules are not relevant to them. All these things are the same today as they were in Shakespeare’s time, and because of that, his stories are still very relevant to us.

What is the best synonym for relevant?

relevant

• pertinent, applicable, apposite, material, apropos, to the point, to the purpose, germane, admissible.
• appropriate, apt, fitting, suitable, proper.
• connected, related, linked.
• ad rem.

  What are relevant words?

  Here are some words that are associated with relevant: pertinent, applicable, germane, relate, appropriate, specific, necessary, detailed, useful, essential, practical, subject, important, sensitive, meaningful, helpful, particular, irrelevant, related, material, apposite, conversant, succinct, aspects, pertaining.