Select the Correct Statement Regarding Relevant Costs and Revenues

question 19

Multiple Choice

Select the correct statement regarding relevant costs and revenues.

• A) Relevant costs are also known as unavoidable costs.
• B) Relevant costs are only those that are based on past experience.
• C) Relevant revenues must differ among the alternatives.
• D) All of these answers are correct.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before those of common stockholders.

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not reflect its actual market value.

Cumulative

Refers to the total amount accumulated over a period of time or the aggregate of elements collected.

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.