Future Costs Are Relevant in Decision Making When They _____

question 132

Multiple Choice

Future costs are relevant in decision making when they _____.

• A)exceed future revenues
• B)are not based on estimates
• C)differ between alternatives
• D)are the same between alternatives

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Definitions:

Service Costs

The expenses recognized in the period in which employees render services to obtain future benefits under a defined benefit plan.

Deferred

This refers to items or transactions that are postponed or delayed to a future date for accounting purposes.

Percentage-of-Completion Method

An accounting technique used to recognize revenue and expenses of long-term projects proportionally to the work completed to date.

Long-Term Contracts

Agreements that establish the terms for ongoing services or project work that lasts over an extended period, often involving incremental delivery and payment schedules.