True or false questions

1.Plant capacity isnotrelevant in decision making.

2.Relevant costs are those that vary among choices.

3.Sunk costs are always relevant in making a decision.

4.Sunk costs are considered relevant when choosing among alternatives because they are differential.

multiple choice

Companies generally set sales targets higher than break-even figures because

a.it indicates the sales needed to attain a certain level of profit.

b.assists in planning for new equipment if sales can be reached.

c.an income objective is set that can be communicated throughout the company.

d.break-even analysis may not be effective in all situations.