Which of the Following Statements Is True

question 88

Multiple Choice

Which of the following statements is true?

• A) Past costs are always relevant for decisions and are often useful in estimating future cost behaviour.
• B) Past costs are always relevant for decisions, but are rarely useful in estimating future cost behaviour.
• C) Past costs are never relevant for decisions, nor are they useful in estimating future cost behaviour.
• D) Past costs are never relevant for decisions, but are often useful in estimating future cost behaviour.

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Definitions:

Predominant Factor Test

A legal doctrine used to classify a transaction within the framework of the Uniform Commercial Code (UCC) by determining the main purpose of the contract.

Liberally Administered

A principle or policy applied in a manner that is flexible, generous, or not strictly in accordance with strict rules or formalities.

Aggrieved Party

An individual or entity that has suffered legal wrong or harm, and who is entitled to bring a lawsuit against the party responsible for that harm.

Modified Contract

An agreement where the original terms have been altered or amended by the parties involved, following mutual consent.