Cost Management Measuring Monitoring and Motivating Performance 2nd Edition By Susan K. Wolcott – Test Bank

True / False

1. Steel used in the production of automobiles would generally be classified as a direct cost.
2. Traceability can be used as a criterion to differentiate direct and indirect costs.
3. Textbook costs are an opportunity cost of earning a college degree.
4. Salaries and wages you could earn while in college constitute a sunk cost.
5. Learning curves lead to greater productivity over time.
6. Past costs are irrelevant for both decision making and predicting future costs.
7. Past costs are relevant for decision making, but irrelevant for predicting future costs.
8. Past costs are irrelevant for decision making, but may be relevant for predicting future costs.