1.Costs that are always relevant in decision-making are:

1)

future costs.

2)

avoidable costs.

3)

sunk costs.

4)

fixed costs.

2.In a make or buy decision, which of the costs below are relevant?

1)

Fixed costs that will not change regardless of the decision.

2)

Only conversion costs.

3)

Fixed costs that can be avoided in the future if the decision is to buy.

4)

Only direct material costs.

3.The direct materials budget:

1)

is the beginning point in the budget process.

2)

must provide for desired ending inventory as well as for production.

3)

is accompanied by a schedule of cash collections.

4)

is completed after the cash budget.