A cost that is traceable to a segment through activity-based costing may or may

Question

A cost that is traceable to a segment through activity-based costing may or may not be an avoidable cost for decision making.

True    False

Only future costs that differ between alternatives are relevant in decision making.

True    False

Future costs that do not differ between the alternatives in a decision are avoidable costs.

True    False

The book value of a machine, as shown on the balance sheet, is not relevant in a decision concerning the replacement of that machine by another machine. (Ignore taxes.)

True    False

A cost that is relevant in one decision may not be relevant in another decision.

True    False

The book value of old equipment is a relevant cost in a decision to replace that equipment. (Ignore taxes.)

True    False

Explanation / Answer

1. True

2. False

3. False

4. False

5. False

6. True

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