Select the incorrect statement regarding relevant costs and revenues.
A) To be relevant, a cost or revenue must be future-oriented and must differ among the alternatives.
B) Sunk costs are never relevant for decision-making purposes.
C) Differential revenues are expected future revenues that differ from past revenues.
D) Avoidable costs are also known as differential costs.

Question

Quizplus · Accepted Answer

C) is incorrect because differential revenues are expected future revenues that differ among the alternatives being considered, not necessarily from past revenues.

Select the Incorrect Statement Regarding Relevant Costs and Revenues