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Management · Q380

Management Accounting

Graduate and Post Graduate · Management · question 380

Q380

Costs such as book value of old machines are 25000 can be a classified as an example of

A.
salvages
B.
relevant
C.
irrelevant
Answer
D.
depreciated cost

Answer: Option C

Solution

Answer: Option C
Solution:
Costs such as book value of old machines are $25000 can be a classified as an example of irrelevant cost. An irrelevant cost is a cost that will not change as the result of a management decision.