Answer:
Relevant cost : Avoidable cost
Irrelevant cost : Sunk costs and future costs
Explanation:
Dropping or retaining a product line by a company depends on the effect of the product line on the net operating income of the company i.e. if the net income is decreased because of a product line then the product line should be dropped and vice versa.
Relevant costs to the dropping of a product line
Avoidable costs is a relevant cost that should be considered when dropping a product line
Irrelevant costs
Sunk costs ( i.e. past operational costs )
and future costs
