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.