1. (a) State whether the following statements are true or false:

1. Conversion cost is prime cost plus factory overhead.
2. Within the relevant range and within the relevant time period, the variable cost per unit remains constant.
3. Sunk cost is relevant only for Financial Accounting and not for decision making.
4. All direct costs are variable costs.
5. Opportunity cost is an imaginary cost and hence, irrelevant for all purposes.
7. Distinguish between the following:
8. Fixed Cost and Sunk Cost
9. Apportionment of Cost and Absorption of Cost
10. Maximization Profit and Maximization of Value as objectives of a firm