1. In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period. True/ false

2. The salary paid to the president of a company would be classified on the income statement as a(n): manufacturing overhead cost. manufacturing overhead cost, selling expense, direct labor cost , admin expense

3.Differential costs can: only be fixed costs, be sunk costs, only be variable costs, be either fixed or variable

4.

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device

Rent on the administrative office space is:a product cost, an opportunity cost, variable cost, period cost

5. A variable cost remains constant if expressed on a unit basis. true/ false