10 Which of the following is true of relevant information A

10) Which of the following is true of relevant information? A) All fixed costs are relevant. B) All C) Future D) All fixed costs are not relevant Future revenues and expenses are relevant.

Solution

Correct answer is D) All fixed costs are not relevant

Relevant costs are the costs that effects the decision making and hence should be taken into consideration. Some fixed costs that remain fixed irrespective of the decision doesnot effect the decision making process and hence are not relevant costs.