When analyzing relevant information which items should not be included in the decision?
A) The increase in additional fixed costs of manufacturing
B) The increase in costs per unit manufactured
C) Future changes in set-up and facility costs
D) Depreciation on existing machines

Question

Quizplus · Accepted Answer

Depreciation on existing machines is a non-cash expense and does not affect the cash flow, making it irrelevant for decision-making regarding new investments or operational changes.

When Analyzing Relevant Information Which Items Should Not Be Included