2: Which of the following statements are true and which are false? (10 point) 1. The use of absorption costing can result in misleading product cost information. 2. Variable costing treats fixed overhead cost as a period cost. 3. When units produced equal units sold, reported income is identical under absorption costing and variable costing. [ ] [ ] [ ] | 4. To convert variable costing income to absorption costing income, management will need to change the way fixed overhead costs are treated. [ ] 5. At break-even point, a particular point in which total revenue and total cost are equal [ ] 6. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level. [ ] 7. Activity-based costing (ABC) is a method of assigning overhead and indirect costs to products and service. [ ] 8. Mixed costs are costs that contain both a variable and a fixed cost component and change overall, but not in proportion, to changes in the level of activity. [ ] 9. Fixed costs are costs that differ directly and proportionately with changes in activity levels. 10. In cost-volume-profit analysis, the number of units sold is assumed to be equal to the number of units produced. [ ] [ ]