Answer (D) is correct . Relevance is the capacity of information to make a difference in a decision by helping users of that information to predict the outcomes of events or to confirm or correct prior expectations. Thus, relevant costs are those expected future costs that vary with the action taken. All other costs are constant and therefore have no effect on the decision.
Answer (A) is incorrect because The ultimate determinant of relevance is the ability to influence the decision.
Answer (B) is incorrect because The ultimate determinant of relevance is the ability to influence the decision.
Answer (C) is incorrect because The ultimate determinant of relevance is the ability to influence the decision.
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