Which of the Following Is False Concerning Relevant Costs and Relevant

question 17

Multiple Choice

Which of the following is False concerning relevant costs and relevant revenues?

• A) Every decision deals with the future.
• B) Nothing can be done to alter past costs or revenues.
• C) Historical costs may be useful for predicting future costs.
• D) Historical costs in themselves are irrelevant to a decision on future costs.
• E) Total differential costs include both relevant and irrelevant costs.

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Definitions:

Transferor

The party who transfers rights or property to another party, the transferee.

Unauthorized Signature

The signing of a document by a person who does not have the legal authority or permission to do so.

Instrument

A formal legal document that evidences an agreement, right, or obligation, such as a contract, will, promissory note, or share certificate.

Treasurer Liability

The financial responsibilities borne by the treasurer of an organization, including managing funds and financial risk.