Which of the following statements about variable and fixed expenses, as they relate to relevance, is/are true?
i. Variable expenses may or may not be relevant costs.
ii. Variable expenses are always relevant.
iii. Fixed expenses are never relevant.

Question

Quizplus · Accepted Answer

Variable expenses may or may not be relevant depending on the situation, but they can be relevant costs. Fixed expenses may also be relevant depending on the situation. Therefore, statement ii and iii are incorrect.

Which of the Following Statements About Variable and Fixed Expenses