Question 1

To be relevant in decision making, cost or revenue information must be future-oriented and must differ between the alternatives.

Question 1 options:

	True
	False

Question 2

Stephanie must decide between two alternatives for the weekend: babysitting or yard work. If she baby sits, she will receive $40 and will incur $15 in food and snack costs. If she does yard work, she will receive $40 and will incur $3 in lawn mower gas and oil costs and $5 in snack costs. The amount of money she would receive for the jobs is relevant in deciding which alternative to select.

Question 2 options:

	True
	False

Question 3

Differential revenues are expected future revenues that differ among the alternatives under consideration.

Question 3 options:

	True
	False

Question 4

An alternative under consideration involves incurring $50 in costs to generate $60 in revenue. The $10 difference between revenue and costs is known as differential revenue.

Question 4 options:

	True
	False