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11 August, 10:03

Relevant information is the historical costs and revenues that differ due to alternative courses of action. Select one: True False

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Answers (2)
  1. 11 August, 10:45
    0
    The statement is: False.

    Explanation:

    In every company, it is important to come up with an analysis of different variables before coming up with a decision. When relevant information is focused on providing pricing decisions, a firm must request a contribution-margin income statement to compare what will be the necessary investment against the expected net return.

    Thus, historical costs and revenues are not considered relevant information in decision-making focused on pricing.
  2. 11 August, 13:13
    0
    False

    Explanation:

    Relevant information is the predicted future cost and revenue that differ among alternative. The data used also has to be relevant or else, there will be a misinformation and deviated action

    It is about finding useful information about potential customers for the purpose of investment decision making.

    For its decision making purpose, making use of historical cost is not valid for as this is not sufficient for the evaluation of business decision.
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