Question One (10 points): Indicate and justify whether the following statements are (True) or (False): 1. A cost that differs from one month to another is known as a differential cost. 2. The potential benefit that is given up when one alternative is selected over another is called an opportunity cost. 3. Contribution margin equals revenue minus all fixed costs. 4. The contribution format is widely used for preparing external financial statements. 5. A tradition format income statement organizes costs on the basis of behavior. 6. The planning horizon for a discretionary fixed cost usually encompasses many years. 7. Manufacturing salaries and wages incurred in the factory are period costs. 8. Direct material costs are generally fixed costs. 9. Selling costs can be either direct or indirect costs. 10. A direct cost is a cost that cannot be easily traced to the particular cost object under consideration