I. Select the serrest statement regarding "relevant" costs and/or revenues. a. Relevant costs are also known as "unavoidable costs" b. Relevant costs are only those that are based on prior e. Relevant revenues must not differ among the alternatives. d. None of the above represent correct statements. or purposes of decision making. "relevant" costs are costs that: a are avoidable by choosing one alternative over the other. b. were incurred in the past c. will not be incurred in the future, regardless of the alternative chosen. d. none of the above support the definition of "relevant" costs. 3. Which of the following items represents "qualitative" information? a. The original acquisition cost of a new machine for operations. b. Annual depreciation expense of an existing machine. c. The precision tolerance ratings of two machines used in production d. The impact on production employees when outsourcing the production process. 4, Hull brought his lunch today, but now a co-worker/friend, England, has asked him to go to the deli across the street. Unfortunately, England did not offer to pay for Hull's lunch. Select the correst statement from the following a. The cost of the lunch brought is relevant to Hull's decision to have lunch with his friend b. The cost of the lunch brought has nothing to do with Hull's current decision. c. The cost to buy lunch at the deli is not relevant to Hull because it has not yet been incurred. d. The cost of the lunch Hull brought represents an opportunity cost of dining with his friend. 5. Falcon, Inc. produce multiple sporting goods products in a single factory. Mgmt is considering the elimination of one of these products due to reported losses. Which of the following costs is least likely to be relevant for this decision? a. raw material costs to produce the product in question. b. packaging costs required to distribute the product in question. c. set-up costs that can be avoided be eliminating the product showing the loss. d. depreciation of the factory equipment used to produce the product in question. e. advertising costs related to the product in question. 6. Kilgore McCorvey&Mason, Inc. has three departments. One is a tutoring department, providing quality studying support to discriminating students. If the tutoring department is closed, the general manager will not be affected because his/her services would still be needed by the remaining two departments. If all operations cease, however, this manager will be laid-off. Which of the following is the primary lesson to be learned from this scenario? a. Some sunk costs can be avoided (and would therefore be relevant). b. Opportunity costs are never relevant. c. The relevance of costs is context sensitive. d. Quantitative information must be precise and accurate in order to be relevant e. Qualitative information need not be precise because it is never relevant. 7. The cost avoided when a company eliminates a single item of a product or service is a: a. batch-level cost. b. facility-level cost. c. unit-level cost. d. product-level cost. 8. Select the incorrest statement conceming "opportunity" costs a. Opportunity costs are not cumulative. b. Opportunity costs are relevant if they differ among the alternatives at hand c. Opportunity costs must be future oriented. d. Opportunity costs are recorded in the accounting records