Problems that should be avoided when identifying relevant costs include all of the following EXCEPT:
A)assuming all variable costs are relevant
B)assuming all fixed costs are irrelevant
C)using unit costs that do not separate variable and fixed components
D)using total costs that separate variable and fixed components

Question

Quizplus · Accepted Answer

Using total costs that separate variable and fixed components may not necessarily be a problem to be avoided when identifying relevant costs. However, assuming all variable costs are relevant and assuming all fixed costs are irrelevant are common mistakes that should be avoided. Using unit costs that do not separate variable and fixed components can also lead to inaccurate identification of relevant costs.

Problems That Should Be Avoided When Identifying Relevant Costs Include