Relevant Revenues and Relevant Costs Are the Only Information Managers

question 109

True/False

Relevant revenues and relevant costs are the only information managers need to select among alternatives.

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Definitions:

Total Fixed Costs

The sum of all costs that do not change with the level of production or sales, over a specified period of time.

Manufactures

Companies or individuals involved in the conversion of raw materials into finished goods, through the use of labor and machinery.

Office Furniture

Fixed assets consisting of desks, chairs, tables, cabinets, and other furnishings used in an office environment.

Variable Utilities Cost

Expenses for utilities that change in proportion to the level of production or activity of a business.