If a Cost Is Irrelevant to a Decision,the Cost Could

question 106

Multiple Choice

If a cost is irrelevant to a decision,the cost could not be

• A)a sunk cost.
• B)a future cost.
• C)a variable cost.
• D)an incremental cost.

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Definitions:

GAAS

Generally Accepted Auditing Standards; guidelines that auditors follow when conducting audits on companies' financial statements.

GAAP

Stands for Generally Accepted Accounting Principles, a set of accounting standards and practices used in the United States to ensure consistency and transparency in financial reporting.

Opinion Letter

A document issued by an auditor after the completion of auditing financial statements. This letter expresses whether the audit has been performed in compliance with Generally Accepted Auditing Standards (GAAS) and whether, in the auditor’s opinion, the financial statements fairly present the client’s financial position and results of operations in conformity with Generally Accepted Accounting Principles (GAAP).

Auditor's Opinion

A formal statement by an auditor, after reviewing an organization's financial statements, regarding the fairness and accuracy of those statements.