1. If direct material and labor cost is not the major component in the cost structure, it is more appropriate to use activity based costing to allocate the overhead cost.
True
False
2. By life cycle viewpoint, salvage value summarizes all the costs and revenues occurring in the last service year of an asset.
True
False
3. If all the cash flows activities are presented in constant dollar, we should use the real interest rate to calculate the after-tax present worth.
True
False