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Future and historical costs

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'Any future cost is relevant'. Do you agree? Explain.

Why are historical or past data irrelevant to special decisions?

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Solution Summary

The solution provides the discussion on if future and historical costs are relevant.

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I do agree with this statement. When planning either for a budget or strategic planning the future costs are important because they can shift the costs and eventual price of a product or service and change the way customers decide to buy. Future costs are going to decide the product life cycle as well. If they price is too low or too high, the buyers can change their habits to increase or decrease buying. This limits or extends the mature life cycle. If strategic planning has decided that within two years to ...

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