1. Segmented income statements are most meaningful to managers when they are prepared:A) on an absorption cost basis.B) on a cost behavior (contribution) basis.C) on a cash basis.D) in a single-step format.2. All other things equal, if a division’s traceable fixed expenses decrease:A) the division’s segment margin will increase.B) the overall company net operating income will decrease.C) the division’s contribution margin will increase.D) the division’s sales volume will increase.3. A general rule in relevant cost analysis is:A) variable costs are always relevant.B) fixed costs are always irrelevant.C) differential future costs and revenues are always relevant.D) depreciation is always irrelevant.4. Opportunity costs are:A) not used for decision making.B) the same as variable costs.C) the same as historical costs.D) relevant to decision making.5.Which of the following are valid reasons for eliminating a product line?I. The product line’s contribution margin is negative.II. The product line’s traceable fixed costs plus its allocated common corporate costs are less than its contribution margin.A) Only IB) Only IIC) Both I and IID) Neither I nor II1. Segmented income statements are most meaningful to managers when they are prepared:A) on an absorption cost basis.B) on a cost behavior (contribution) basis.C) on a cash basis.D) in a single-step format.2. All other things equal, if a division’s traceable fixed expenses decrease:A) the division’s segment margin will increase.B) the overall company net operating income will decrease.C) the division’s contribution margin will increase.D) the division’s sales volume will increase.3. A general rule in relevant cost analysis is:A) variable costs are always relevant.B) fixed costs are always irrelevant.C) differential future costs and revenues are always relevant.D) depreciation is always irrelevant.4. Opportunity costs are:A) not used for decision making.B) the same as variable costs.C) the same as historical costs.D) relevant to decision making.5.Which of the following are valid reasons for eliminating a product line?I. The product line’s contribution margin is negative.II. The product line’s traceable fixed costs plus its allocated common corporate costs are less than its contribution margin.A) Only IB) Only IIC) Both I and IID) Neither I nor II