If Accounting Information Has Relevance, It Is Useful in Making

question 90

Multiple Choice

If accounting information has relevance, it is useful in making predictions about

• A)future IRS audits.
• B)new accounting principles.
• C)foreign currency exchange rates.
• D)the future events of a company.

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Definitions:

Variable Expenses

Costs that vary in direct proportion with the level of production or sales volume, such as raw materials and sales commissions.

Traceable Fixed Expenses

Fixed costs that are directly associated with a specific department or product, and can be directly traced to it.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by an investor's or company's risk tolerance.

Average Operating Assets

Refers to the average value of the assets employed in a business's operations over a certain period of time, used to assess operational efficiency and return on investment.