State whether following statements are true or false:

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State whether the following statements are true or false:

  1. In Differential Cost analysis, managerial decisions are based on contribution and P/V ratio.
  2. Differential Costing can be used in absorption costing as well as Marginal Costing.
  3. Contribution per unit of key factor is the basis of ranking products on profitability.
  4. Sunk cost is a Relevant Cost for Decision Making.
  5. Differential Cost becomes equal to the Marginal Cost if there is no change in the Fixed Cost.
  6. Opportunity cost is an irrelevant Cost for Decision Making.
 
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