1. Rex Company is consider the following 3 options: Option A Option B Option C Revenues Variable Costs Fixed Costs $40,000$40,000$30,000 $10,000$12,000$9,000 S5,000$5,000$5,000 Which of the following statements is correct? a. b. c. d. In choosing between Option B and Option C, fixed costs are relevant. In choosing between Option A and Option C, variable costs are relevant. In choosing between Option A and Option B, revenues are relevant. In choosing between all three options, fixed costs are relevant. 2. This chapter defines the following cost: i. Avoidable costs ii. Sunk costs iii. Opportunity costs iv. Differential costs Which of these costs are relevant in making decisions? a. b. c. d. Costs i, iii, and iv. Costs i, ii, and iv. Cost i, ii, and iii. None of the answers are correct 3. When considering make or buy decisions, managers should consider a. b. c. d. Alternative uses for any facility currently being used to make the item The avoidable fixed costs included in making the item Qualitative factors such as whether the supplier can deliver the item on time. All of the above items should be considered