Indicate whether each of the following statements is true or false:

1. Service and product cost information is used for both financial reporting and managerial accounting.

2. Companies report service costs but not product costs in their financial statements.

3. Service companies are required to match the costs of providing services with the revenues generated from the services.

4. Information about the cost of providing services or products is essential for decision making.

5. For a hospital or electric utility, service and product costing information is useful in contract negotiations and in setting rates.