Ac 102 Test 3 True/False & Multiple Choice 4 pts. each 1Costs which increase in total amount in direct proportion to an Name Taxes o called variable costs True False 26.13 lue . When cost-volume profit analysis is used, the need for a cost accounting system is 2. eliminated. True False The contribution margin is the difference between total revenue and fixed costs. 3. 26.14 en Cash Flows True False 4.) Opportunity costs are recorded in the accounting records ugh LO26-3 26.15 True False Present e Closing In determining whether to scrap or to rebuild defective units of product, the cost already incurred in producing the defective units is not relevant. 5. c True False 6. The typical starting point of a master budget would be to prepare a budgeted balance sheet. True False ough L 26.1A 7.) A company that is profitable may not have sufficient cash on hand to meet their immediate eting n of A Ws needs. True False 8. ) The present value of a future cash flow is the amount you would pay today for the right to receive that future amount. True c False