Question 1) Under variable costing, all variable costs are treated as product costs.

True

False

Question 2) A company with sales of $50,000, variable costs of $35,000, and fixed costs of $25,000 will reach its breakeven point if sales are increased by $20,000.

True

False

Question 3) Whether the purchase cost of a machine is treated as fixed or variable depends heavily on the time horizon being considered.

True

False