We define relevant revenues as ________.
A)sunk costs
B)theory of constraints
C)product-mix decisions
D)expected future revenues
E)past costs in decisions making

Question

Quizplus · Accepted Answer

Relevant revenues refer to the expected future revenues that can be gained or forgone by making a particular decision. It is an important aspect of decision-making in businesses as it guides the decision-makers to choose options that can generate the most revenue. A is incorrect because sunk costs refer to costs that have already been incurred and cannot be recovered. B refers to a management philosophy that seeks to optimize business processes. C refers to the process of choosing which products to make or sell based on the expected profit margins. E refers to incorporating past costs into present decision making, which is not a relevant consideration in decision-making.

We Define Relevant Revenues as ________