1) If absorption costing is used, it is possible the firmwide profitability can be reduced by discontinuing selected products that are sold for less than their total product cost. True False 2) The contribution margin is calculated by subtracting all variable costs, whether related to production, sales, or administration. True False 3) Identified service department costs are first allocated to other units, including other servic departments, under the direct approach. True False 4) Generally accepted accounting principles: (2.5pts) require use of variable costing. require use of absorption costing. permit, but do not require, use of variable costing permit, but do not require, use of absorption costing. (2.5pts) 5) Which of the following is not a "product cost" under absorption costing? Direct materials Variable manufacturing Fixed manufacturing overhead None of these