True/False 58. Compared to regression analysis, the high-low method usually provides more reliable estimates of the cost equation. 59. The rate that a company must pay to obtain funds from creditors and stockholders is known as the cost of capital. 60. Management is responsible for the content of the financial statements. 61. If a company replaces manual labor with automated factory equipment, it will increase fixed costs, its operating leverage, and its break-even point. 62. A company can be profitable and still have cash flow problems. 63. The Balance Sheet provides information on the liquidity and solvency of a company. 64. A thorough evaluation of how well a project's actual performance matches the projections made when the project was proposed is called a post-audit. 65. A company's discount rate is based on the cost of capital and the risk element. 66. Post-audits create an incentive for managers to make accurate estimates, since managers know that their results will be evaluated. 67. Actual manufacturing overhead cost for the year was $300,000. Applied manufacturing overhead cost for the year was $310,000 Manufacturing overhead cost was underapplied. I 68. The Activity-Based Costing method results in more accurate product costs compared to both the single plantwide factory overhead rate method and the multiple production department factory overhead rate method, but it is more expensive to implement and maintain