Multiple Choice (1 point each) 1. An opportunity cost: A) is an unavoidable cost because it remains the same regardless of the alternative chosen B) requires a current outlay of cash C) results from past managerial decisions D) is the potential benefit lost by choosing a specific alternative course of action among two or more 2. Which of the following is relevant to ABC Co's decision to accept a special order at a lower sales price from a large customer in China? A) the cost of shipping the order to the customer B) the cost of ABC's warehouses in the US C) the CEO's salary D) ABC's investment in its website - 3. When making decisions, managers should consider: A) revenues that differ between alternatives B) costs that do not differ between alternatives C) only variable costs D) sunk costs 4. Differential costs are: A) the profit forgone by selecting one choice instead of another B) a cost that continues to be incurred in the absence of activity C) a common cost to all choices in question D) the difference in total costs that results from selecting one choice instead of another