Reference no: EM131766682

1) Freight costs incurred in shipping products to customers is properly referred to as a product rather than period cost of the selling company. T/F

2.) Period cost include all selling and administrative cost, both variable and fixed. T/F

3.) The salary of a manufacturing company quality control inspector would typically be accounted in manufacturing overhead. T/F

4.) A retail merchandising company's cost of goods sold typically includes part of store utililty cost. T/F

5.) A manufacturing company's cost of goods sold includes only product cost. T/F

6.) The basis used to apply manufacturing overhead in a job order cost system based on a predetermined overhead rate should be a measurable activity which correlates with or drives overhead costs. T/F

7.) Managerial accounting is governed by rules issued by the AICPA. T/F

8.) If sales price & fixed costs remain constant while variable costs per unit increase, the number of units needed to be sold to reach the break-even point increases. T/F

9.) Unrecoverable past costs are always irrelevant in evaluating future business decision alternatives. T/F

10.) The manufacturing operation most likely to use job-order costing rather than process costing is:
A. cereal manufacturing
B. candy manufacturing
C. crude oil refining
D. office building construction

11.) In a job order cost system, work-in-process inventory is debited when:
A. actual manufacturing overhead is incurred.
B. raw materials are purchased
C. direct labor costs are incurred
D. actual manufacturing overhead and direct labor costs are incurred
E. all of these