Which of the Following Is a True Statement About Costs

question 46

Multiple Choice

Which of the following is a true statement about costs in incremental analysis?

• A)Variable costs are always relevant.
• B)Fixed costs are never relevant.
• C)Fixed costs are always relevant.
• D)Both variable and fixed costs can be relevant.

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Definitions:

Grantor

The individual or entity that establishes a trust, transfers property, or conveys rights to another person or entity.

Spendthrift Trust

A trust designed to provide financial support to a beneficiary while protecting the trust assets from the beneficiary's creditors or from being spent recklessly by the beneficiary.

Creditors

Individuals or entities to whom money is owed by a debtor or the company.

Interested

Refers to having a stake or concern in an outcome or matter due to potential personal gain, loss, or impact.