Q387
Cost such as dispose value of an old machine is 6000 is classified as
A.
irrelevant
B.
depreciated cost
C.
salvages
D.
relevant
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Cost such as dispose value of an old machine is $6000 is classified as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions.