Relevant revenues and costs refer to
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 refer to the differences between the alternatives being considered. These are the revenues and costs that will be affected by a decision or action, and are the only ones that should be considered in decision making. Past activities or monies already earned and spent may be irrelevant to the decision at hand. Last year's net income may provide some useful information, but it is not directly relevant to the decision being made.

Relevant Revenues and Costs Refer to