Fixed costs may or may not be sunk costs A. True B. False One criticism of the payback method is that it ignores cash flows that occur after the payback point has been reached. A. True B. False In a decision to drop a product, the product should not be charged for factory rent if the space in which the product is produced has no alternative use and the rental payment is unavoidable. A. True B. False When a company has a production constraint, total contribution margin will be maximized by emphasizing the products with the lowest contribution margin per unit of the constrained resource. A. True B. False In a factory operating at capacity, not every machine and person should be working at the maximum possible rate. A. True B. False When using internal rate of return to evaluate investment projects, if the internal rate of return is less than the required rate of return, the project should be accepted. A. True B. False If a project does not have constant incremental revenues and expenses over its useful life, the simple rate of return will fluctuate from year to year. A. True B. False A manufacturing cycle efficiency (MCE) ratio close to 1.00 is desirable because this is the ratio of value-added time to throughput time. A. True B. False