Costs that behaves as irrelevant costs in process of decision making are classified as
A. past costs
B. future costs
C. expected costs
D. sunk costs
Answer: Option A
Solution(By Examveda Team)
Costs that behaves as irrelevant costs in process of decision making are classified as past costs. A past cost is money that has already been spent. These funds cannot be recovered, so the related cost is irrelevant for decision-making purposes. A past cost is also known as a sunk cost.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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