Circle the single best answer 9. Variable costing may be used for internal or external reporting: (a) true; (b) false 10. When using absorption costing, all manufacturing costs (direct materials, direct labour, variable overhead, and fixed overhead) are considered product costs: (a) true; (b) false 11. The income statement used for variable costing usually classifies costs by function (manufac- turing costs vs. selling and administrative costs): (a) true; (b) false 12. Contribution margin equals sales minus variable manufacturing costs: (a) true 13. 14. W When sales equal production, net income is the same under the two methods: (a) true; (b) false hen sales exceed production, absorption-costing income will generally exceed variable- costing income: (a) true; (b) false 15. The difference between absorption-costing income and variable-costing income can be calculated as the change in the number of units in inventory multiplied by the fixed overhead rate per unit (assuming the FOH rate remains unchanged): (a) true; (b) false 16. The segment margin provides information useful in assessing the long-run profitability of a segment: (a) true; (b) false Use the following information to answer Questions 17 through 24