To identify: The appropriate answer for the given statement
Answer to Problem 1QC
Option c. The false statement is relevant information is always financial in nature.
Explanation of Solution
Relevant Information
Relevant Information is the information which is useful for the managers to make decisions.
a.
Relevant information always differs among alternatives.
This is also one of the characteristics of relevant information that it is different for different alternative decisions. Therefore, the given statement is not false.
b.
Relevant information always regards the future.
This is one of the characteristics of the relevant information that it always considers future for taking the decisions. This is the true statement.
c.
Relevant information is always financial in nature.
Relevant information is not always financial in nature. It also considers nonfinancial aspects to take a decision. Thus, the given statement is false.
d.
Sunk costs are never relevant to a decision.
Sunk costs are the cost that is incurred in the past and cannot be changed in future. This means it doesn’t consider the future and hence is never relevant to a decision. Hence, the statement is true.
Want to see more full solutions like this?
Chapter 8 Solutions
Managerial Accounting (4th Edition)
- Please provide the accurate answer to this general accounting problem using valid techniques.arrow_forwardPlease explain this financial accounting problem by applying valid financial principles.arrow_forwardPlease provide the answer to this general accounting question with proper steps.arrow_forward
- Accounting 12 May I please have a brief summary highlighting one unique feature of the app, recommending it to Sadie—who wants to use the app for her dog grooming salon to begin accepting credit cards as payment for grooming? Thank youarrow_forwardAccounting 12 Could an expert provide a brief summary highlighting one unique feature of the app, recommend it to Sadie—who wants to use the app for her dog grooming salon to begin accepting credit cards as payment for grooming? Thank you,arrow_forwardI need help with this financial accounting question using accurate methods and procedures.arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education