1.Select the correct statement regarding relevant costs and revenues.

a. Sunk costs are relevant for decision-making purposes.

b. Relevant costs are frequently called unavoidable costs.

c. Direct labor is an example of a unit-level cost.

2. Select the correct statement about the master budget.

a. The master budget is a group of detailed budgets and schedules representing the company's operating and financial plans for the past accounting period.

b. The master budget usually includes operating budgets and capital budgets, and pro forma financial statements.

c. The budgeting process usually begins with preparing the strategic budgets.

d. Preparing the master budget begins with the cash budget.

d. Only variable costs are relevant for decision making.