Question 1
Are relevant revenues and relevant costs the only information needed by managers to select among alternatives? Explain using examples.
Question 2
Assume you are a sophomore in college and are committed to earning an undergraduate degree. Your current decision is whether to finish college in four consecutive years or take a year off and work for some extra cash.
a. Identify at least two revenues or costs that are relevant to making this decision. Explain why each is relevant.
b. Identify at least two costs that would be considered sunk costs for this decision.
c. Identify at least two opportunity costs for this decision.
d. Comment on at least one qualitative consideration for this decision.
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