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

Respuesta :

Answer:

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.

Answer:

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.