Evaluating and rewarding managers based on absorption basis income can lead to overproduction.

True

False

Variable costing is required by Generally Accepted Accounting Principles (GAAP) for financial statement purposes.

True

False

If a company has excess capacity, increases in production level will increase variable production costs but not fixed production costs.

True

False

Information presented in a variable costing format can assist management when making short-term pricing decisions.

True

False