True or false:

1. Contribution margin can only be determined if costs are separated into product and period costs.

2. The higher the magnitude of a company's operating leverage, the smaller the decrease in profit for a given percentage decrease in revenue.

3. The activity base selected determines whether a cost behaves as a variable cost or fixed cost.

4. One reason for computing the average cost for a product rather than the actual cost is that average cost is easier to compute.