Economics · Management Accounting
The following statements relate to the concept of relevant cash flows in decision making: 1. Materials can never have an opportunity cost whereas labour can. 2. An annual depreciation charge is not a relevant cash flow. 3. Fixed costs would have a relevant cash flow element if a decision causes a change in their total expenditure. Which statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2 and 3
- 22 and 3 only✓
- 31 and 3 only
- 41 and 2 only
Correct answer
2 and 3 only
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