1.

Relevant costs are:

Group of answer choices

all costs.

all future costs that differ between alternatives.

all past cost.

all future costs.

2.

A high price is not necessarily the price that will maximize income.

Group of answer choices

True

False

3.

A company has revenues of $500,000, fixed manufacturing costs of $100,000, variable manufacturing costs of $150,000, variable selling costs of $50,000, fixed selling costs of $30,000, and fixed administrative costs of $70,000. The contribution margin is:

Group of answer choices

$300,000

$100,000

All of the other answers are incorrect.

$250,000

4.

A differential cost:

Group of answer choices

includes past costs.

is the same as a sunk cost.

All of the other answers are incorrect.

is equal to the difference in relevant costs between two alternatives.