Relevant Revenues and Costs Refer to

question 88

Multiple Choice

Relevant revenues and costs refer to

• A) activities that occurred in the past
• B) monies already earned and/or spent
• C) last year's net income
• D) differences between the alternatives being considered

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing its decrease in value over time.

Shipping Costs

Expenses associated with transporting goods from one location to another, often considered part of the cost of sales or inventory.

Sales Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. In this context, it specifically refers to a tax on sales of goods and services.

Ordinary Repairs

Expenditures to maintain an asset in its normal operating condition without significantly extending its useful life or altering its capacity.