... her asset replacement decision—that is, the relevant What are sunk costs and whyare they not relevant in makingdecisions?3Chapter 12 Relevant Costing 501accounting system. Such factors cannot ... purchasing the X-ray machine?2. What are the characteristics of a relevant cost? Why are future costs not always relevant? Are all relevant costs found in accounting records? Explain.3. What is ... Controlling540This example demonstrates the difference between relevant and irrelevant costs,including sunk costs. The next section shows how the concepts of relevant cost-ing, incremental revenues, and incremental...