iscover 1. Define the following terms: relevant cost, incremental cost, opportunity cost, and sunk cost. 2. Are variable costs always relevant costs? Explain. 3. "If a product is generating a loss, then it should be discontinued." Do you agree? Explain. 4. How will relating product contribution margins to the amount of the constrained resource they consume help a company maximize its profits? split-off point. product should be sold at the split-off point or processed 5. Define the following terms: joint products, joint costs, and 6. What guideline should be used in determining whether a joint further