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:

Sex Chromosome

A type of chromosome involved in determining the genetic sex of an organism, typically represented as XY for males and XX for females in humans.

Males

Refers to the sex that produces small, mobile gametes, such as sperm in humans, typically associated with certain physiological and anatomical features.

Females

Individuals of the sex that typically has XX chromosomes, capable of bearing offspring or producing eggs.

Fertility Drugs

Medications that are prescribed to stimulate ovulation in order to treat infertility in women and men.