1. An opportunity cost is the potential bonofit lost by taking a specific action when two or more alternative choices are available True False 2. A sunk cost will change with a future course of action. True False If the internal rate of return (IRR) of an investment is lower than the hurdle rate, the project should be accepted True False Neither the payback period nor the accounting rate of return methods of evaluating investments considers the time value of money. True False 4. 5. A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials