Relevant revenues and costs focus on:
A)activities that occurred in the past.
B)monies already earned and/or spent.
C)last year's net income.
D)differences between the alternatives being considered.

Question

Quizplus · Accepted Answer

Relevant revenues and costs are those that are affected by the decision being made. Therefore, the best choice is D, which refers to the differences between the alternatives being considered. A, B, and C are incorrect because they focus on past activities or results, while relevant costs and revenues are prospective in nature.

Relevant Revenues and Costs Focus On