Which of the following statements regarding costs and decision making is correct?

Multiple Choice

• Fixed costs must be considered only on a per-unit basis.

• Per-unit fixed cost amounts are valid only for make-or-buy decisions.

• Per-unit fixed costs can be misleading because such amounts appear to behave as variable costs when, in actuality, the amounts are related to fixed expenditures.

• Sunk costs can be misleading in make-or-buy decisions because these amounts appear to be relevant differential costs.

• Opportunity costs should be ignored when evaluating decision alternatives.