"Variable costs are relevant and fixed costs are irrelevant.". Explain why you agree or disagree with this statement
The statement is not true. Costs are classified as relevant or irrelevant depending on whether or not they are avoidable. A fixed cost may be avoidable (relevant) just as a variable cost may be unavoidable (irrelevant) among alternatives being considered.
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The guiding principle of The Richards Group advertising agency is "we sell the truth."
Indicate whether the statement is true or false
The __________ is a theory explaining why a product that begins as a nation's export eventually becomes its import.
What will be an ideal response?
Which ethical perspective argues that decisions should be based on what does the most good for the greatest number of people?
A. categorical imperative B. confucianism C. utilitarianism D. altruism
Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods12%10.892921.690132.401843.0373 What is the net present value of the machine?
A. $30,000. B. $(3,100). C. $26,900. D. $24,018. E. $(29,520).