Select the Incorrect Statement Regarding Relevant Costs and Revenues

question 69

Multiple Choice

Select the incorrect statement regarding relevant costs and revenues.

• A) To be relevant,a cost or revenue must be future-oriented and must differ between the alternatives.
• B) Sunk costs are never relevant for decision-making purposes.
• C) Differential revenues are expected future revenues that differ from past revenues.
• D) Avoidable costs are also known as differential costs.

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Definitions:

Humanism

An outlook or system of thought attaching prime importance to human rather than divine or supernatural matters, emphasizing human dignity and potential.

Approved Standards

Refers to formal guidelines or specifications that have been validated by an authoritative body or consensus for repeated use.

Unethical Behavior

Not conforming to a set of approved standards of behavior— cheating on an exam, for example.

Ethical Principles

Fundamental guidelines that dictate behavior, ensuring actions and decisions are morally right and benefit both individuals and society as a whole.