Question

Which of the following statements is true?

a. Fixed costs are sometimes relevant for decision making.
b. Opportunity costs are never relevant to decision making.
c. Information must be exactly accurate to be relevant to decision making.
d. A cost that is relevant in one decision context is relevant in other decision contexts.

Select the correct statement regarding relevant costs and revenues.

Answer 1

The correct answer is

a. Fixed costs are sometimes relevant for decision making.