Multiple choice

Directions: Choose the correct option for the given question.

Which of the following expenses are useful in taking managerial decisions?

  1. Applied expenses

  2. Notional expenses

  3. Deferred expenses

  4. Normal expenses

  5. Abnormal expenses
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Notional expenses are costs that do not involve an actual cash outlay but are included in cost accounts for decision-making purposes, such as interest on capital or rent on owned premises.

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