Select the Incorrect Statement Regarding Relevant Costs and Revenues

question 69

Multiple Choice

Select the incorrect statement regarding relevant costs and revenues.

• A) To be relevant,a cost or revenue must be future-oriented and must differ between the alternatives.
• B) Sunk costs are never relevant for decision-making purposes.
• C) Differential revenues are expected future revenues that differ from past revenues.
• D) Avoidable costs are also known as differential costs.

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Definitions:

Belgian Frontier

The international border of Belgium with its neighboring countries, which has been a strategic and economic consideration throughout history.

Mersel-Kébir

A naval engagement off the coast of Algeria in 1940, where the British Royal Navy attacked French Navy ships to prevent them from potentially falling into German hands during World War II.

Neville Chamberlain

Neville Chamberlain was a British prime minister best known for his policy of "appeasement" toward Adolf Hitler's Germany in the lead-up to World War II.