Which of the following is False concerning relevant costs and relevant revenues?
A) Every decision deals with the future.
B) Nothing can be done to alter past costs or revenues.
C) Historical costs may be useful for predicting future costs.
D) Historical costs in themselves are irrelevant to a decision on future costs.
E) Total differential costs include both relevant and irrelevant costs.

Question

Quizplus · Accepted Answer

Total differential costs only include relevant costs, not irrelevant costs. Relevant costs and revenues are those that differ between the alternatives being considered for a decision. Every decision deals with the future, past costs and revenues can't be changed, and historical costs may be useful for predicting future costs.

Which of the Following Is False Concerning Relevant Costs and Relevant