Question 1 Problem 1-1 Finished goods are units of inventory that have been started, finished and sold. True False Question 2 Problem 1-2 If a company is profitable, the contribution margin must be greater than the total fixed costs. True - False Question 3 Problem 1-3 Direct material, indirect labor and depreciation on factory equipment are all product costs. True False Question 4 Problem 1-4 An equal increase in cash and accounts receivable would properly balance the accounting equation. True False Question 5 Problem 1-5 Operating activities are the core activities that a business performs to earn revenue. True False