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1) Which of the following is false concerning relevant costs and relevant revenues?
A) Every decision deals with the future
B) Historical costs in themselves are irrelevant to a decision on future costs
C) Nothing can be done to alter past costs or revenues
D) Total differential costs include both relevant and irrelevant costs
E) Historical costs may be useful for predicting future costs
2) The variation in total costs between two alternatives is known as
A) Analyzed cost
B) Expected Cost
C) Predictable cost
D) Differential Cost
E) Irrelevant Cost
3) Reinstein decided to complete a fifth year of college instead of accepting a job with a public accounting firm at a beginning salary of $18,000 for the first year of employment. The tuition, food books, supplies and other direct costs of the extra year of college are estimated to be $8,000. Living expenses would be about. $9,000 per year for either situation. The opportunity cost of Reinstein's decision to attend college was:
A) $8,000
B) $18,000
C) $10,000
D) $26,000
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