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When an essential information for calculation of income statement is missing, then costs that can be considered for this purpose is called
Answer & Solution
Correct Answer:
Option
D
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.
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