QUESTION 3 Which of the following statements about product cost and period costs is FALSE? O A. On an Absorption Income Statement, Product Cost (times units sold) is deducted below Gross Margin. OB. Product cost = Inventoriable cost. OC. Period costs often consist of Selling, General and Administrative expenses. OD. Product cost generally includes Direct Material costs. QUESTION 4 Which of the following statements regarding Degree of Operating Leverage is correct? O A % change in profit = (% change in sales) times (Degree of operating leverage) O B.% change in fixed cost (% change in sales) times (Degree of operating leverage) OC.% change in profit - (% change in variable cost) times (Degree of operating leverage) OD.% change in contribution margin = (% change in profit) times (Degree of operating leverage)