A Relevant Cost Is a Cost That

question 13

Multiple Choice

A relevant cost is a cost that:

• A)has the potential to influence a decision.
• B)changes in direct proportion to changes in activity level.
• C)can be traced to a specific cost object.
• D)is used for control purposes.

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Definitions:

Monthly Payroll

The total amount of wages paid by a business to its employees in one month.

Accounting Firm

A business that provides services related to the processing, measurement, and communication of financial information about economic entities.

Salaries

Payments made to employees for their services, typically expressed as an annual sum and paid at regular intervals.

Mathematics Scores

Numerical outcomes or grades obtained from assessments or tests in the field of mathematics.