Management Accountants Can Help Support the Quality Initiatives of Management

question 96

Multiple Choice

Management accountants can help support the quality initiatives of management by supplying decision makers with relevant financial information regarding these initiatives. Which of the following statements is true regarding costs that are relevant for decision making within this context?

• A) Relevant costs are variable costs.
• B) Relevant costs are fixed costs.
• C) Relevant costs include out-of-pocket but not opportunity costs because the latter are not recorded by accounting systems.
• D) Relevant costs are future costs that differ between (or across) decision alternatives.
• E) Relevant costs would not include estimated losses due to reduced market share.

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Definitions:

Dating Cohabitation

A living arrangement in which a couple who spends a great deal of time together eventually decides to move in together.

Census Bureau

A national agency responsible for collecting, analyzing, and publishing statistical data about the population, economy, and society of a country, typically on a regular basis.

Substitute Marriage Cohabitation

A living arrangement where couples live together as if married without legally formalizing the union.

Common-law Marriage

A marriage recognized in some jurisdictions, where a couple lives together for a period and presents themselves as married without having a formal ceremony or license.