Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A) Past costs are always relevant for decisions and are often useful in estimating future cost behavior
• B) Past costs are always relevant for decisions, but are rarely useful in estimating future cost behavior
• C) Past costs are never relevant for decisions, nor are they useful in estimating future cost behavior
• D) Past costs are never relevant for decisions, but are often useful in estimating future cost behavior

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Definitions:

Declines

Decreases in the value, amount, or quality of something.

Zero Slope

A horizontal line on a graph, indicating that there is no change in the y-value (vertical) regardless of the change in the x-value (horizontal); it represents a constant function.

Positive Slope

Indicates an upward trend on a graph, demonstrating that as one variable increases, the other variable also increases, especially used in the context of supply and demand curves in economics.

Consumption

The use of goods and services by households or individuals for personal needs or wants.