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true or false Choose true or false as applicable for each of the following items as they pertain to relevant information and making decisions about
true or false
Choose "true" or "false" as applicable for each of the following items as they pertain to relevant information and making decisions about alternatives. The book value of a machine purchased in a prior year would be irrelevant to a decision of the current year. A sunk cost is irrelevant. In deciding between two alternatives, the revenue associated with each alternative is relevant even if the revenue is exactly the same for both alternatives. A cost that is relevant for one decision may be irrelevant for a different decision. The full cost (variable and fixed costs combined) of a product would always be relevant in a decision regarding a one time special order. Fixed costs are never relevant. The sell price for a one time special order would always be expected to be the same as that of on-going, recurring business. Qualitative factors should not be considered relevant. Only quantitative factors should be considered relevant since they are more objective. If the sell price associated with a one time special order is lower than the full cost of the product, the order should always be rejected. Incremental costs are typically, but not always, variable costs Step by Step Solution
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