True or False Accounting Exercise

1- Costs that can be traced to a cost object in a cost-effective way are called direct costs: TRUE or FALSE

2- In order to perform cost-volume-profit analysis, a company must be able to identify its variable and fixed costs. TRUE or FALSE

3- Traditional cost systems usually allocate overhead to products on the basis of direct labor. TRUE or FALSE

4- Unless there are other factors to be considered, an investment opportunity with a return on investment that equals or exceeds the company's required rate of return would be accepted.TRUE or FALSE