The costs listed below relate to a variety of different decision situations.

Instructions
For each cost listed above, indicate if it is relevant or not to the related decision. For those costs determined to be irrelevant, briefly explainwhy.

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Cost Decision 1. Unavoidable fixed overhead 2. Direct labor 3. Original cost of old equipment 4. Joint production costs 5. Opportunity cost 6. Segment managers salary Eliminate an unprofitable segment Make or buy Equipment replacement Sell or process further Accepting a special order Eliminate an unprofitable segment 7. Cost of new equipment 8. Incremental production costs 9. Direct materials (manager will be terminated) Equipment replacement Sell or process further Equipment replacement (the amount of materials required does not change) Purchase or lease a building 10. Rent expense