An operating statement is a financial report provided to management, detailing the performance of specific areas of operation over a selected budget period. It includes production levels, costs incurred, and revenues generated, and is compared with budgeted amounts and previous performances.
Relevant income, also known as relevant revenue, refers to the revenue that changes as a result of a proposed business decision. Revenues that remain unchanged by the decision are considered irrelevant to the decision-making process.
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