Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

IMANET Exam CMA Topic 2 Question 33 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 33
Topic #: 2
[All Certified Management Accountant Questions]

The relevance of a particular cost to a decision is determined by?

Show Suggested Answer Hide Answer
Suggested Answer: D

Relevance is the capacity of information to make a difference in a decision by helping users of that information to predict the outcomes of events or to confirm or correct prior expectations. Thus, relevant costs are those expected future costs that vary with the action taken. All other costs are constant and therefore h no effect on the decision.

Contribute your Thoughts:

Currently there are no comments in this discussion, be the first to comment!

Save Cancel