Which of the following statements about relevant information is/are true?
i. An accountant can use past prices, previous market demand and previous cost data to predict future costs when repetitive decisions are made.
ii. No relevant information is available within an organisation's information system for unique decisions.
iii. It is important to segregate relevant data from irrelevant data because it is possible to overload management with information.

A) i
B) ii
C) ii and iii
D) i and iii

Question

17M260 Sai vivek · Accepted Answer

Final Answer : D, Explanation :  i. This statement is true as past data can be used to make predictions about future costs in repetitive decisions.ii. This statement is false as relevant information can be obtained for unique decisions, it just may require additional research or data collection.iii. This statement is true as it is important to provide management with only the relevant information they need to make decisions, otherwise they may become overwhelmed with too much information.

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