Problem 1: Multiple-Choice Questions (39 points) Instructions: Circle the letter of the one best answer to each question. 1. Which of the following will never be a relevant cost? A. Opportunity cost B. Sunk cost C. Variable cost D. Fixed cost E. All of the above can be a relevant cost 2. Which of the following will always be a relevant cost? A. Sunk cost B. Fixed cost C. Variable cost D. Opportunity cost E. None of the above will always be a relevant cost 3. A company has a process that results in 15,000 pounds of Product X that can be sold for $8 per pound. An alternative would be to process Product X further, at a cost of $100,000, and then sell it for $14 per pound. Should management sell Product X now or should Product X be processed further and then sold? A. Process further, the company will be better off by $10,000 B. Sell now, the company will be better off by $10,000 C. Process further, the company will be better off by $90,000 D. Sell now, the company will be better off by $100,000 Which of the following is not relevant when deciding whether or not to replace a piece of equipment? 4. A. Price of new equipment B. Trade in allowance of old equipment C. Book value of old equipment D. Salvage value of old equipment E. All of the above are relevant