1. When measuring divisional operating costs, direct versus indirect refers to whether

	A.	the division manager can affect the cost.
	B.	the costs associate directly with the division.
	C.	the costs are variable.
	D.	the costs are fixed.

2. A differential cost is a cost that changes (differs) as a result of changing which of the following?

	A.	Batches or levels of batches
	B.	Products or levels of products
	C.	Departments or levels of departments
	D.	Activities of levels of activities

3. Relevant costs for decisions to sell or process further include

	A.	additional processing costs.
	B.	sunk costs.
	C.	fixed costs.
	D.	joint costs.