Expert Q&A Done Problem 3: True/False 1. The difference between unit sales price and uni aible cost is the contribution marge 2. A relatively low margin of safety eatio for a product is wualily n ndication that the product has a high contribution margn " 3. The product mix is held constat is the key assumptionthm-be- onder to use CVP analysis with multiple peodacts 4. The CVP model assumes that over the relevant range of activity total fixed costs change S. Conversion cost is equal to the sum of direct labor and overhcad costs 6. Indirect costs cost can be conveniendly traced to a cost object or pool. 7. Repairs to the receptionist's computer would NOT be a period cost for 8. The cost of goods that were finished and transferred out of work in process during the current period is called cost of goods available for sale. Opportunity cost is the benefit lost when choosing one option precludes receiving the benefits from an alternative option. 9. 10. Strategic management can be defined as the development of a sustainable cash flow 11. Cost management information is the information the manager needs to effectively manage the firm or not-for-profit organization