A general rule in relevant cost analysis is: a. variable costs are always relevant. b. fixed...
A general rule in relevant cost analysis is:
| a. |
variable costs are always relevant. |
|
| b. |
fixed costs are always irrelevant |
|
| c. |
differential future costs and revenues are always relevant |
|
| d. |
depreciation is always irrelevant |
Homework Answers
Answer is C: Differential Future cost and revenues are relevant because these two we consider for taking decisions.
a) variable cost are always relevant is false as there are situations where we dont consider variable cost becauuse it is same for both the decisions.
b) Fixed cost are relevant in some situation where for two decision they are not same.
d) depreciation is relevant in situation where for two decisions depreciation is different for two decisions .
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A general rule in relevant cost analysis is:
a.
variable costs are always relevant.
b.
fixed...
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QUESTION 7 A general rule in relevant cost analysis is variable costs are alwavs relevant fixed costs are always irrelevant differential future costs and revenues are always relevant depreciation is always relevant QUESTION 8 The basic objective of the residual income approach to performance measurement and evaluation is to have a division maximize its return on investment (ROI) O cash flows cash flows in excess of a desired minimum amount. net operating income in excess of a minimum return QUESTION...
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