Indicate Whether Each of the Following Statements Is True or False

question 122

Short Answer

Indicate whether each of the following statements is true or false.
1. A cost that is relevant to one decision may be irrelevant to another.
2. To be relevant in decision making, cost information need not be exactly correct.
3. When making decisions in business, information that cannot be quantified (expressed in numbers) generally is not relevant.
4. Eliminating a segment of a business may eliminate some facility-level costs.
5. The sacrifice represented by a lost opportunity is an opportunity cost.

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Definitions:

Par Bonds

Bonds that are issued and traded at their face value or nominal value.

Financial Leverage

Utilizing borrowed money to amplify the possible gains from an investment, while also elevating the chance of incurring losses.