Which of the following are relevant costs when a firm attempts to decide on the best course of action_ OA Sunk costs. B. All of the answers are relevant. C. Historical costs. Opportunity costs or the cost of replacing one factor of production by another.

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.