1. When deciding whether to lease or buy you do not take into account the items salvage value as that is a sunk cost

True

False

2. A contribution margin ratio of .90 would indicate that 90% of all sales dollars go towards paying variable costs and 10% go towards down fixed costs or increasing profit.

True

False

1. Which of the following is not an effective inventory control procedure?
   1. Inventories and usage rates of high-priced items should be monitored daily
   2. Storage and production staff should be required to leave the facility by an exit that is easily observed by managers
   3. Storage employees should maintain inventory records

d. Adjustments to inventory records must be approved by the controller