TRUE

FALSE

1.Past costs are relevant for both decision making and predicting future costs

2.The book value of a computer is considered a sunk cost

3.The first step in estimating a cost function for relevant costs is to select a cost estimation technique.

4.Categorizing costs by their behavior is one step in estimating relevant costs for a cost object.

6.An example of a indirect cost would be indirect materials such as staples used in production to make wooden tables

7.A cost driver is some input or activity that causes changes in total cost for the cost object.

8.An example of a fixed cost would be direct materials used in production to make wooden tables

9.An example of an overhead cost would be production supervisors salary