In make-or-buy and special-order decision making, costs that differ between alternative choices are known as:

Explanation

Core Concept: Relevant Costs are future costs that differ among competing options. Non-differential costs and sunk costs should be excluded from managerial decision analysis. Context/Distractors: Sunk costs were incurred in the past and cannot be changed, so they are irrelevant. Exam Tip/Key Fact: Opportunity costs—foregone benefits from alternative choices—are always relevant in decision making.