The relevant costs are classified in relevance concepts as ____________?
Correct answer: D. expected future costs
- A. abnormal costs
- B. serial costs
- C. parallel costs
- D. expected future costs
Explanation
A relevant cost must be an expected future cost that differs between the alternatives being considered. Costs already incurred or costs identical under every option do not affect the decision.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as __________?
The costs such as book value of old machines are $25000 can be a classified as an example of ____________?
The fourth step in decision making process is ____________?
The difference that exists between total revenues, can be earned from two different alternatives is termed as ________?
As compared to irrelevant cost, the occurrence of relevant costs must ___________?
The factor, which is largely considered in making or buying decisions is __________?