Which of the following statements is true?
A) Past costs are always relevant for decisions and are often useful in estimating future cost behavior
B) Past costs are always relevant for decisions, but are rarely useful in estimating future cost behavior
C) Past costs are never relevant for decisions, nor are they useful in estimating future cost behavior
D) Past costs are never relevant for decisions, but are often useful in estimating future cost behavior

Question

Quizplus · Accepted Answer

Past costs, also known as sunk costs, are not relevant for decision-making because they cannot be changed by future actions. However, they can be useful in estimating future cost behavior by providing historical data and trends.

Which of the Following Statements Is True