17. For a manufacturing company, direct materials and direct labor are variable costs, but manufacturing overhead (MOH) is mixed costs.

1. True
2. False

18. Variable costs per unit of activity have an inverse relationship with the change in volume of activity.

1. True
2. False

19. The following format of income statement is not accepted as GAAP.

Sales Revenue

Variable Costs

Contribution Margin

Fixed Costs

Net Income

1. True
2. False

20. The following format of income statement is not accepted as GAAP.

Sales Revenue

Costs of Goods Sold

Gross Profit

Operating Costs

Net Income

1. True
2. False