managerial answer key

managerial answer key - True / False Questions 1....

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True / False Questions 1. Managerial accounting is primarily concerned with the organization as a whole rather than with segments of the organization. FALSE 2. Managerial accounting places less emphasis on nonmonetary data than financial accounting. FALSE 3. Direct labor is a part of both prime cost and conversion cost. TRUE 4. Wages paid to production supervisors would be considered direct labor. FALSE Key 5. Direct material cost combined with manufacturing overhead cost is known as conversion cost. FALSE 6. Advertising is a product cost as long as it promotes specific products. FALSE 7. Although depreciation is always a period cost in a merchandising firm, it can be a product cost in a manufacturing firm. TRUE 8. In a manufacturing firm, all costs are product costs. FALSE 2-58 Key 9. The cost of shipping parts from a supplier is considered a product cost. TRUE 10. If the finished goods inventory increases between the beginning and the end of a period, then the cost of goods manufactured for the period is larger than the cost of goods sold. TRUE 11. The inventory of finished goods on hand at the end of a period is considered an asset, but inventories of raw materials and work-in-process are not considered assets until production is completed. FALSE Level: Medium 12. The cost of goods manufactured for a period is the amount transferred from work in process inventory to finished goods inventory during the period. TRUE 2-59 Key 13. Differential costs can be either fixed or variable. TRUE
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managerial answer key - True / False Questions 1....

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