When an essential information for calculation of income statement is missing, then costs that can be considered for this purpose is called
A. expected cost
B. expected revenues
C. irrelevant costs
D. relevant costs
Answer: Option D
Solution(By Examveda Team)
When an essential information for calculation of income statement is missing, then costs that can be considered for this purpose is called relevant costs. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.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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