Respuesta :
Yummy granola is considering to sell premium granola. Since it wants to sell premium granola, it has to consider $1.15/pound as his cost for the decision making. Only the relevant cost should be considered for the decision making process.
The cost which will not be considered for selling premium granola is the cost incurred on regular granola like refining it . Cost incurred on refining the regular granola is an irrelevant cost which will not be considered for decision making.
Yummy granola is considering selling premium granola. Since it wants to sell premium granola, it should consider $ 1.15 / pound as its decision-making cost.
What are relevant costs?
Relevant cost is a management accounting term that describes the avoidable costs incurred only when making certain business decisions.
The concept of relevant costs is used to eliminate unnecessary data that can make the decision-making process difficult.
The considerable cost of selling premium granola is the cost incurred on regular granola as refining.
The costs incurred in refining ordinary granola are insignificant costs that cannot be considered for decision-making.
Thus, Only relevant costs should be considered in making decisions.
To learn more about relevant costs, refer to the link:
https://brainly.com/question/14184614
