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Carlton LaFrance
on Oct 23, 2024

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Which of the following statements about variable and fixed expenses, as they relate to relevance, is/are true?
i. Variable expenses may or may not be relevant costs.
ii. Variable expenses are always relevant.
iii. Fixed expenses are never relevant.

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

Variable Expenses

Costs that change in relation to the level of activity or volume of production.

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent and salaries.

Relevant Costs

Future costs that will differ under various alternatives, considered important for making financial decisions.

  • Comprehend the significance and idea of pertinent data in making accounting decisions.
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SG
Shawn GerovacOct 25, 2024
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