1-The larger the contribution margin ratio, the smaller the amount of sales required to cover a given amount of fixed expenses.

True

False

2-The effect of responsibility accounting is to personalize the accounting system.

True

False

3- Depreciation expense on existing factory equipment is generally relevant to a decision of whether to accept or reject a special offer for a company's product.

True

False

4-Operating profit is affected by changes in production under both the variable costing and absorption costing approaches.

True

False

5- An unfavourable material quantity variance indicates that the actual usage of material exceeds the standard material allowed for output.

True

False