CIMA P1 Question Answer
Which of the following statements about relevant costs is correct?
Relevant costs will always be lower than the full costs used in external profit reporting.
Relevant costs will always be higher than the full costs used in external profit reporting.
Relevant costs may not be used in external profit reporting because they do not adhere to the accruals basis of accounting.
Relevant costs must be used in external profit reporting so that reported profits follow the pattern of cash flow.
TESTED 06 Jan 2026
Copyright © 2014-2026 ACE4Sure. All Rights Reserved