Which of the Following Statements Is True

question 94

Multiple Choice

Which of the following statements is true?

• A)Fixed costs are sometimes relevant for decision making.
• B)Opportunity costs are never relevant to decision making.
• C)Information must be exactly accurate to be relevant to decision making.
• D)A cost that is relevant in one decision context is relevant in other decision contexts.

---

Definitions:

Material Price Variances

Material price variances represent the difference between the actual cost of raw materials used in production and the expected or standard cost.

Sales Department

The division within a company responsible for the sale of products and services, including marketing and customer relations.

Operating Income

The difference between gross profit and operating expenses.

Decision-Making Processes

The steps or stages involved in choosing between alternatives to reach a conclusion or determine a course of action.