Respond that the following statements are TRUE or FALSE:

1) The purpose of managerial accounting is to provide managers with information that is useful for internal decision making.

2) The type of information provided by managerial accounting differs from the information provided by financial accounting.

3) Under variable costing, fixed manufacturing overhead costs are treated as a product cost.

4) Under variable costing, the fixed manufacturing overhead costs are classified as period costs and are expensed in the period in which they are incurred.

5) Variable costing cannot be used for preparing financial reports for external users, such as investors and creditors.