Select the correct statement regarding relevant costs and revenues.
A) Relevant costs are also known as unavoidable costs.
B) Relevant costs are only those that are based on past experience.
C) Relevant revenues must differ among the alternatives.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Relevant revenues must differ among the alternatives because if the revenues are the same for all alternatives, they are not relevant to the decision-making process. Option A is incorrect because relevant costs are not necessarily unavoidable costs. Option B is incorrect because relevant costs are based on both past and future costs. Option D is incorrect because A and B are incorrect.

Select the Correct Statement Regarding Relevant Costs and Revenues