Problems that should be avoided when identifying relevant costs include all of the following EXCEPT:
A)assuming all fixed costs are irrelevant.
B)using total costs that separate variable and fixed components.
C)assuming all variable costs are relevant.
D)using unit costs that do not separate variable and fixed components.

Question

Quizplus · Accepted Answer

Using total costs that separate variable and fixed components is actually a recommended practice when identifying relevant costs. A, C, and D are all problems that should be avoided - assuming all fixed costs are irrelevant, assuming all variable costs are relevant, and using unit costs that do not separate variable and fixed components, respectively.

Problems That Should Be Avoided When Identifying Relevant Costs Include