104.A company's compensation system for its managers should provide incentives for the managers to maximize the company's long-term profitability. True False 105.If managers' performance is...

104.A company's compensation system for its managers should provide incentives for the managers to maximize the company's long-term profitability.



True False

105.If managers' performance is evaluated solely on the current year's profitability, managers are likely to make decisions that lead to the company's long-term profitability.



True False

106.Variable costs can often be used as a proxy for long-term costs.



True False

107.For many managerial decisions (such as outsourcing and special order decisions), unit-level costs are avoidable costs.



True False

108.A constraint is a factor that restricts sales of a company's products or services.



True False

109.A company that is subject to the effect of a scarce resource should concentrate on providing products or services that give the greatest contribution margin per unit of product or service.



True False

110.The practice of relaxing constraints is likely to increase a business's profitability.



True False