An alternative under consideration involves incurring $50 in costs to generate $60 in revenue. The differential revenue for this alternative is $10.

True

False

.Relevant costs are frequently called avoidable costs.

True

False

Cable Corporation is evaluating two decision alternatives. Alternative One has costs of $1,000 and revenues of $1,500 while Alternative Two has costs of $1,600 and revenues of $2,000. The amount of differential revenue between these alternatives is $500.

True

False

.Only variable costs are relevant for decision making.

True

False

Avoidance of product-level costs can be achieved by eliminating the product line.

True

False

Fixed costs are relevant for decision making if they vary between the alternatives and will occur in the future.

True

False

Sunk costs are not relevant for decision-making purposes.

True

False