Relevant Costs Are Always

question 47

Multiple Choice

Relevant costs are always

• A) fixed costs.
• B) variable costs.
• C) avoidable costs.
• D) sunk costs.

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Definitions:

First-in

A reference to the "First-In, First-Out" (FIFO) inventory method where the oldest inventory items are recorded as sold first.

Processing Department

A division or unit within a company where a particular phase of the manufacturing process is completed.

Total Cost

The complete cost of production, including both fixed and variable costs, to manufacture a product or deliver a service.

Processing Department

A division within a manufacturing operation where a specific type of processing or assembly is completed.