True/False: A company's hurdle rate can be higher than its cost of capital,

True/False: A project should be rejected if its internal rate of return is lower than the hurdle rate.

True/False: In deciding whether to sell a product as is or process it further, you should always process the product further if its contribution margin per unit will be higher after being processed further.

True/False: Profit from byproducts will reduce the cost of goods sold of the main products.

Under absorption costing, gross profit is equal to:

A) Sales - Period Costs

B) Sales - Product Costs

C) Sales - Product Costs - Period Costs

6. Under variable costing, contribution margin is equal to

A) Sales - Variable Costs

B) Sales - Fixed Costs

C)Sales - Variable Costs - Fixed Costs

7. In determining inventory cost, which of the following will be included under both variable costing and absorption costing?

A) sales commission

B) office staff salary

C) direct material