SHEET No, because GAAP roquires all costs to be included in the product A cost that is not affected by ter decisions is called an) Historical cost aReplacement cost d Sunk cost 26 Which is of the following is not true bTo be relevant, information must make a difference in a decision To be relevant, information mast differ ansong the altematives To be relevant, information must be enture and past oriented. To be relevant, information mast be future oriented 27 Which of the following statements is not true? A. B. Opportunity costs are never relevant to decision making C Information does not have to be exactly accurate to be relevant to decision making D. A cost that is relevant in one decision context is not necessarily relevant in other decision contests. Fixed costs are sometimes relevant for decision making PROBLEMS. Each is worth 10 points 28. Handy Hiking produces backpacks. In the previous year, its highest and lowest production was: and January, respectively. In July, it produced 4,000 backpacks at a total cost of $110,000. In January, it produced backpacks at a total cost of S87,500. Using the high/low method, the average variable cost per of producing a backpack levels occurred in July 2,600 io, ov-37 50002,50 110 on7, 29 The Grant Company reported the following income for 2017 $134,000 Sales Cost of goods sold Gross margin Selling and administrative expense Operating income Interest expense Income before taxes 82,000 S 52,000 19,000 S 33,000 5,400 S 27,600 8,280 Income tax expense S 19,320 Net income 4 of s