1) Mimi's Consulting Agency has received a request from a new client regarding budgeting systems. You need to calculate the relevant costs for the services.  How much is the relevant cost for the consultant? a) 0 b) $1,000 c) cannot be determined 2) How much is the relevant cost for the services of Bill? a) 0 b) $300 c) $600 d) cannot be determined 3) How much is the relevant cost for the services of the analyst? a) 0 b) $300 c) $450 d) $360 e) 150 f) cannot be determined 4) A new project requires the use of an existing machine that would otherwise be sold. Is the purchase price a relevant cost? a) Yes b) No c) Uncertain d) Cannot be determined 5) Is the carrying value a relevant cost? a) Yes b) No c) Uncertain d) Cannot be determined 6) Is the estimated current sales value a relevant cost? a) Yes b) No c) Uncertain d) Cannot be determined 7) What kind of "cost" is the estimated current sales value of $4,000? a) Sunk cost b) Opportunity cost c) Incremental d) Fixed e) None of these 8) What cost should be charged to the new contract for metal ZX? a) $5,250 b) $6,500 c) $9,000 d) $10,500

Relevant costs

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