Which of the Following Could Not Be a Relevant Cost

question 56

Multiple Choice

Which of the following could not be a relevant cost in deciding whether or not to eliminate a producing department?

• A) The current residual value of the department's equipment
• B) The salary of a supervisor who would be laid off
• C) The carrying value of the department's equipment
• D) Revenue that could be generated by renting out the department's space

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Definitions:

Middle

Generally refers to an intermediate position or stage between two extremes, such as the middle of a process, area, or period.

Beginning

The point in time or space at which something starts.

End

The conclusion or final point of something, where it ceases to continue.

Recognition

The ability to match a piece of information or a stimulus to a stored image or fact.