Costs that are always relevant in decision-making are:

future costs.

fixed costs.

avoidable costs.

sunk costs.

Opportunity costs are recorded in the accounts of an organization.

True

False

An avoidable cost is a cost that can be eliminated (in whole or in part) as a result of choosing one alternative over another.

True

False

The Brain Teasers (TBT) specializes in creating and manufacturing board games for youth, Each game has a unique game board to accompany the other pieces of the game. The company is at the tinai development stage of a new game called \"Inverted World' based on a recent ctional book and subsequent im of the same name. Since it is important that the game be on the shelves quickly to capitaiize on the advertising and promotion done by the movie studio for the Him. the manager of TBT is considering an offer from another game manufacturer to suppiy the game boards for $5.60 per board. This is a common practice in the game industry as the life of a toy is very short and there is a need to act quickly to get the product to market before demand shifts. TBT's cost accountant has developed the following cost estimates for the production of the game board: Cost per Unit of Inverted World Direct material $3.20 Direct labour 0.80 Production overhead 1.53 Corporate overhead 0.43 Cost of game board $6.46 The accountant has aisc provided the foliowing information: - The board can be produced using current machinery that has a capacity to produce 500'000 units per month and is 50% utilized. - The anticipated demand torthe game wiil not exceed 50,000 units a month. according to the saies team, - Half of the production overhead is xed. - The corporate overhead allocation is based on 15% of the direct materials charge. Required: Compute monthly net benet of making the game boards than buy the game boards lrom the competitor. [Do not round intlnnediate calculations.) State whether TBT should make the game boards or buyI from the supplier. O Yes O No