I - Fundamentals of Cost Analysis for Decision Making True/False Questions (Explain all false answers) 1.If there is only one alternative course of action and the status quo is unacceptable, then there really is no decision to make 2.A decision must involve at least two alternative courses of action 3.Differential analysis cannot be used for long-run decisions because it cannot incorporate the timing of revenues and costs (i.e., the time-value of money 4.Short-run decisions often have long-run implications 5.All variable costs associated with either the status quo or altemative courses of action are differential costs 6.In general, sunk costs are relevant for computing operating profits but irrelevant for making decisions 7.Presenting total operating revenues and total operating costs to decision-makers for each alternative course of action is acceptable in differential cost analysis. 8.Fixed costs are always classified as sunk costs in differential cost analysis 9.The full cost fallacy occurs when a decision-maker fails to include fixed manufacturing overhead in the product's cost. 10.The primary decision for special orders is determining whether the differential revenue is greater than the differential costs associated with the order