1) Specialized materials are an example of a constrained resource.

True or False

2) In dropping an unprofitable product or segment decisions, common (shared) fixed costs of an unproductive segment will be avoidable while direct fixed costs won't be avoidable if that segment is dropped.

True or False

3) From a quantitative standpoint, a segment or a product line should be eliminated if its contribution margin is less than the fixed costs that can be eliminated (avoided).

True of False

4) Opportunity cost does not play a role in the decision of whether to accept special order.

True or False