6. Absorption Costing required by GAAP for external reporting purposes but can result in misleading product cost information and poor managerial decisions. T or F 7. Unit fixed costs increases as the volume of production increases. T or F 8. Absorption Costing includes which of the following: a. Variable overhead b. All of these c. direct labor d. direct material e. fixed overhead 9.If the contribution margin ratio is increased and all other factors are held constant what is the impact on the number of units needed to breakeven. a. the number of units needed to breakeven stays the same b. Non of these is correct c. the number of units needed to break even decreases d. the number of units needed to breakeven increases