Irrelevant Cost
A managerial accounting term that represents a cost, either positive or negative, that does not relate to a situation requiring management's decision. Investopedia Says:
As with relevant costs, irrelevant costs may be irrelevant for some situations but relevant for others. Examples of irrelevant costs are fixed overheads, notional costs, sunk costs and book values. Related Terms:
Book Value
Fixed Cost
Managerial Accounting
Overhead
Relevant Cost
Sunk Cost
Variable Cost |