In order for information to be relevant, the decision to be made must have an effect on:
i. future cost or revenues.
ii. past cost or revenues.
iii. the timeliness of information.

Question

Quizplus · Accepted Answer

Information is considered relevant if it has an impact on future cost or revenues. Past costs or revenues are sunk costs and cannot be changed, so they do not impact decision making. Timeliness of information can be important, but it is not the sole factor in determining relevance. Therefore, only choice (A) is the best option.

In Order for Information to Be Relevant, the Decision to Be