1.Differential revenues are expected future revenues that differ among the alternatives under consideration.

	True
	False

2.An alternative under consideration involves incurring $50 in costs to generate $60 in revenue. The $10 difference between revenue and costs is known as differential revenue.

	True
	False

3.Relevant costs are frequently called avoidable costs.

	True
	False

4.Cable Corporation is evaluating two decision alternatives. Alternative One has costs of $1,000 and revenues of $1,500 while Alternative Two has costs of $1,600 and revenues of $2,000. The amount of differential revenue between these alternatives is $500.

	True
	False

5.Only variable costs are relevant for decision making.

	True
	False

6.Avoidance of product-level costs can be achieved by eliminating the product line.

	True
	Falsee

7. Fixed costs are relevant for decision making if they vary between the alternatives and will occur in the future.

	True
	False