Which of the following statements is true?

Question

Quizplus · Accepted Answer

Fixed costs can be relevant in decision making if they are avoidable in the short-term or if they differ between alternatives being considered.

Option B is incorrect because opportunity costs are relevant in decision making as they represent the benefits foregone from the next best alternative.

Option C is incorrect because information does not need to be exact to be relevant, it just needs to be reliable enough to allow for informed decision making.

Option D is incorrect because a cost that is relevant in one decision context may not necessarily be relevant in another context. Relevant costs depend on the specific decision being made and the alternatives being considered.

Which of the Following Statements Is True