Posted by: Pdfprep
Post Date: February 25, 2021
The following statements relate to relevant cost concepts in decision making:
(i) Materials can never have an opportunity cost whereaslaborcan
(ii) The annual depreciation charge is not a relevant cost
(iii) Fixed costs would have a relevant cost element if a decision causes a change in their total expenditure
Which statements are correct?
A . (i) and (ii) only
B . (i) and (iii) only
C . (ii) and (iii) only
D . (i), (ii) and (iii)
Answer: C
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