Select the Correct Statement Regarding Relevant Costs and Revenues

question 19

Multiple Choice

Select the correct statement regarding relevant costs and revenues.

• A) Relevant costs are also known as unavoidable costs.
• B) Relevant costs are only those that are based on past experience.
• C) Relevant revenues must differ among the alternatives.
• D) All of these answers are correct.

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Definitions:

Yield

Definition: The income return on an investment, such as the interest or dividends received from holding a particular security.

Revolving Line of Credit

A flexible loan where the borrower can access funds up to a certain limit, pay back, and then borrow again without needing to reapply for a new loan.

Simple Interest

Interest computed exclusively on the original amount of a loan or deposit, without adding interest to the principal for future calculations.

Annual Rate

The interest rate for a period of one year, often used to compare the yields of investments or loans.