Which of the following statements is true? 1. The book value of an old machine is always considered an opportunity cost in a decision. 2. A cost that will be incurred regardless of which alternative is selected is not relevant when choosing between the alternatives. 3. A complete income statement need not be prepared as part of a differential cost analysis. 4. An avoidable cost is a sunk cost that can be eliminated (in whole or in part) as a result of choosing one alternative over another. 040 Both statements II and IV are true. Both statements I and II are true. O Both statements II and III are true. O Both statements I and III are true.

Which of the following statements is true? 1. The book value of an old machine is always considered an opportunity cost in a decision. 2. A cost that will be incutred regardless of which alternative is selected is not relevant when choosing between the alternatives 3. A complete income statement need not be prepared as part of a differential cost analysis. 4. An avoldable cost is a sunk cost that can be eliminated (in whole or in part) as a result of choosing one alternative over another. Both staternents is and IV are true. Both staterentsl and th are true 8othstatements ll and wi are true: Qothistimements 1 and ill are urom