True-False Indicate whether each statement is true (T) or false (F). ___ 1. In general, all variable costs are relevant to decisions, and all fixed costs are irrelevant to decisions. ___ 2. Past (historical) costs are always irrelevant to decisions but they can be helpful in predicting future costs. ___ 3. A car rental company is comparing two makes of cars to decide which one to purchase for its fleet. Miles per gallon of fuel consumption is a qualitative factor in this decision. ___ 4. Assuming sufficient idle production capacity is available, a one-time-only special order should not be accepted at a selling price below the total manufacturing cost per unit. ____ 5. Opportunity costs do not entail cash receipts or disbursements. ____ 6. Incremental cost and differential cost have the same meaning. ____ 7. In deciding among three alternatives for the sale of units held in finished goods inventory, the manager should regard past cost of the inventory as irrelevant, whether or not the inventory is obsolete. ____ 8. If there is an inconsistency between the decision model and the performance evaluation model in a decision to keep or replace some old equipment, the managers choice tends to be influenced more by the decision model. ____ 9. (Appendix) The LP model is not applicable to situations where there are more than three constraints. ____ 10. (Appendix) The area of feasible solutions in an LP graphic solution shows the boundaries of those combinations of the two products that satisfy all constraints. (Horngren 107) Horngren, Charles T., Srikant Datar, Madhav Rajan. Stu