1:00 PM ezto.mheducation.com .oooo AT&T; LTE 68% Question 2 (of Save & Exit 50 p

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1:00 PM ezto.mheducation.com .oooo AT&T; LTE 68% Question 2 (of Save & Exit 50 points chapter 23:Relevant Costing for Managerial Decisions Identify relevant costs and apply them to managerial decisions Knowledge Check 07 Question 1 of 1 Which of the following are relevant in short-term decision making? Select the correct answer(s). Multiple boxes may be checked if needed OPurchase price of new equipment OReduction in variable costs Additional revenue OOpportunity costs Sunk costs OBook value Side 15

Explanation / Answer

Solution:

In relevant costing we consider only those cost which will be affected due to accepting or not accepting the decisions or proposals. So in the given problem all are relevant except sunk cost and Book Value because they are already incur or they will not be affected due to taking any decision they will continue to incur.

So for the rest option reasoning of selection is follows.

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