Which of the Following Is Not True Regarding the Determination

question 128

Multiple Choice

Which of the following is not true regarding the determination of relevant costs and relevant revenues associated with quality-related initiatives (such as the move to JIT production) ?

• A) Relevant costs are defined as future costs that differ between and among decision alternatives.
• B) Relevant costs exclude opportunity costs since these costs are not normally recorded by accounting systems.
• C) Relevant costs include all "avoidable" costs.
• D) Long-term effects of relevant costs and relevant revenues are usually assessed using discounted cash flow (DCF) capital budgeting decision models.
• E) Relevant revenues could include the contribution margin associated with increased sales (because of decreased cycle times associated with JIT).

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Definitions:

First Letter

The first letter typically refers to the initial character in a sequence of characters, such as those in an alphabet, word, or string of text.

Federal Holidays

Public holidays established by federal law in a country, during which non-essential federal government offices are closed, and employees are paid for the holiday.

Sample Space

The set of all possible outcomes or results in a probabilistic experiment or random trial.

Defective Merchandise

Items that fail to meet quality standards or are damaged, impacting their usability or saleability.