When making decisions, a general rule would be:
A)Fixed costs are always relevant.
B)Variable (unit-level) costs are always irrelevant.
C)Future costs and revenues are always relevant.
D)Future costs and revenues which differ are always relevant.

Question

Quizplus · Accepted Answer

Future costs and revenues which differ between alternatives are always relevant because they will impact the decision-making process. Fixed costs typically do not change with the decision and are therefore irrelevant, and variable costs can be relevant if they change with the decision.

When Making Decisions, a General Rule Would Be