TF MA CH 11

A decision model is an informal method for making a choice, using simpler methods like surveying.

• TRUE
• FALSE

Feedback from previous decisions uses historical information and, therefore, is irrelevant for making future predictions.

• TRUE
• FALSE

Past costs themselves are always irrelevant when making decisions.

• TRUE
• FALSE

Equal weight must be given to qualitative factors and quantitative nonfinancial factors while making decisions.

• TRUE
• FALSE

The rent paid for an already existing facility is an example of a sunk cost.

• TRUE
• FALSE

A cost may be relevant for one decision, but NOT relevant for a different decision.

• TRUE
• FALSE

Revenues that remain the same for two alternatives being examined are relevant revenues.

• TRUE
• FALSE

Sunk costs are irrelevant to decision making.

• TRUE
• FALSE

Marketing costs will be an irrelevant cost in the decision making of a one-time-only special order.

• TRUE
• FALSE

A sunk cost is a relevant cost in a decision making.

• TRUE
• FALSE