Each of the following are true of relevant information except:
A) Past costs are helpful when making predictions but not relevant when making decisions
B) Different alternatives can be compared by examining differences in expected future revenues and expected total future costs
C) significant past investment amounts are relevant to decision making
D) Not all future revenues and expenses are relevant

Question

Quizplus · Accepted Answer

Relevant information for decision-making focuses on future revenues and costs that differ among alternatives. Past costs, such as significant past investments (sunk costs), are not relevant to future decisions because they cannot be altered by any decision made now.

Each of the Following Are True of Relevant Information Except