A Relevant Cost Is a Cost That Is A(n) ________

question 185

Multiple Choice

A relevant cost is a cost that is a(n) ________.

• A) future cost
• B) past cost
• C) sunk cost
• D) non-cash expense

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Definitions:

Incremental Cash Flows

The additional cash flow received by an organization from undertaking a new project, considered essential for analysis in capital budgeting.

Firm's Future Cash Flows

Expected cash receipts and payments a company anticipates over future periods of time.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Comprehensive Income

An overall measure of all changes in equity from non-owner sources, capturing both realized and unrealized gains and losses.