Indicate whether the statements are true or false.

Indicate whether the statements are true or false. [Select] 1) Incremental costs are the additional costs incurred if a company pursues a certain course of action. [Select] 2) A sunk cost will change with a future course of action. [Select] 3) Another name for relevant cost is unavoidable cost. [Select] 4) Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received. [ Select] 5) In a make or buy decision, management should focus on costs that are different under the two alternatives. [Select] 6) Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs. [Select] 7) If a company has the capacity to produce either 10,000 units of Product A or 10,000 units of Product B; assuming fixed costs are the same, production restrictions are the same for both products, and the markets for both products are unlimited; the company should commit 100% of its capacity to the product that has the higher contribution margin per unit of operating capacity. [Select] 8) A special order of goods or services should always be accepted when the incremental revenue exceeds the normal revenue. [Select] 9) A company's best sales mix is determined using contribution margin per unit of scarce resource. [Select] 10) If accepting additional business would cause existing sales to decline, the offer should always be declined. [Select] 11) Costs already incurred in manufacturing the units of a product that do not meet quality standards are relevant costs in a scrap or rework decision. [Select] 12) Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors that should be considered when making a managerial decision