1. The variable cost per unit is constant and does not depend onhow many units are produced.True False2. A fixed cost is constant per unit of product.True False3. In a manufacturing firm all costs are product costs.True False4. The gross margin percentage is computed taking the differencebetween sales and cost of goods and then dividing the result bysales.True False5. Horizontal analysis of financial statements is accomplishedthrough:A. placing statement items on an after-tax basis.B. common-size statements.C. computing both earnings per share and the price-earningsratio.D. trend percentages.