True/False Answer all questions. Write out the word True or False in the space provided. ( 2 Pts. Ea.) 1. Standard Costs serve as a device for measuring efficiency. 2. The Standard cost is how much a product should cost to manufacture. 3. Standard costs should always be revised when they differ from actual costs. 4. Changes in technology, machinery, or production methods may make past cost data irrelevant when setting standards. 5. Differential revenue is the amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative. 6. A cost that will not be affected by later decisions is termed a Sunk Cost. 7. The amount of income that would result from an alternative use of cash is called opportunity cost. 8. Make or buy decisions should be made only with related parties. 9. The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called cost-volume-profit analysis. two 10. The methods of evaluating capital investment proposals can be grouped into general categories; methods that ignore present value and present value methods. 11. Methods that ignore present value in capital investment analysis include the net present value method. 12. Average rate of return equals estimated average annual income divided by average investment