Relevant Accounting Information

question 23

Multiple Choice

Relevant accounting information

• A)is information that has been audited.
• B)must be reported within the operating cycle or one year, whichever is longer.
• C)has been objectively determined.
• D)is information that is capable of making a difference in a decision.

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Definitions:

Variable Costs

Outgoings that are contingent upon the scale of production operations.

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Required Return

The minimum rate of return an investor expects to achieve by investing in a particular asset.

Initial Investment

The upfront sum of money required to start a project, purchase an asset, or invest in a business venture.