Chapter 9

1. Only quantitative data are used in the decision-making process.

a. True

b. False

2. Sunk costs are irrelevant for decision making.

a. True

b. False

3. The cost of a previously purchased machine is an example of a sunk cost.

a. True

b. False

4. The first step in the incremental analysis is to eliminate all relevant revenues and costs.

a. True

b. False

5. Information that is the same for all alternatives is considered relevant to the decision process.

a. True

b. False