2. True or False(1*10) 1) Period costs are treated as expenses of the accounting period in which they are incurred because managers expect these costs to increase revenues in only that period and not in future periods. 2) Managers compare how operating income, costs, and contribution margins change across various alternatives. They then choose the alternative that maximizes revenues. 3) Because the products and services are distinct, job-costing systems are used to accumulate costs separately for each product or service. 4) Activity-based costing (ABC) refines a costing system by identifying individual activities as the fundamental cost objects. 5) Cost leadership is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors. 6) In for-profit companies, the balanced scorecard must motivate managers to take actions that eventually result in improvements in financial performance. 7) Managers should use only objective measures in the balanced scorecard. 8) To evaluate the success of its strategy, a company can subdivide the change in operating income into growth, price-recovery, and productivity components. 9) We can sum NPVs of individual projects to calculate an NPV of a combination or portfolio of projects. 10) ROI makes clear the benefits managers can obtain by reducing their investment in current or long-term assets.