1. Select the correct statement regarding relevant costs and revenues.
a. Sunk costs are relevant for decision-making purposes.
b. Relevant costs are frequently called unavoidable costs.
c. Direct labor is an example of a unit-level cost.
d. Only variable costs are relevant for decision making.
2. Expected future revenues that differ among the alternatives under consideration are often referred to as:
a. Alternative revenues.
b. Preferential revenues.
c. Relative revenues.
d. Differential revenues.
3. The benefits sacrificed when one alternative is chosen over another are referred to as:
a. Avoidable costs.
b. Opportunity costs.
c. Sacrificial costs.
d. Beneficial costs.