Indicate Whether Each of the Following Statements Is True or False

question 5

Short Answer

Indicate whether each of the following statements is true or false.
1. Relevant costs are frequently called avoidable costs.
2. Variable costs almost always are relevant to a decision, and fixed costs almost always are not relevant.
3. A variable cost is relevant to a decision only when it differs among the alternatives under consideration.
4. The benefit not received from an alternative not selected is an opportunity cost.
5. Opportunity costs are not relevant in decision making, but they can be used in evaluation of management performance.

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Definitions:

Annual Meeting

A yearly gathering of a company's shareholders or members to discuss its affairs, review financial statements, and elect board members.

Special Meetings

Meetings called for a specific purpose, outside of the regular schedule of meetings, often requiring a special notice for attendance.

Per Share Value

The monetary value assigned to each individual share of stock in a company.

Minority Shareholder

An investor who owns less than 50% of a company's shares and therefore has less influence on corporate decisions compared to majority shareholders.