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chap002p2 - Chapter 002 Managerial Accounting and Cost...

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Chapter 002, Managerial Accounting and Cost Concepts 2-5 True / False Questions 1. Managerial accounting is primarily concerned with the organization as a whole rather than with segments of the organization. True False 2. Managerial accounting places less emphasis on nonmonetary data than financial accounting. True False 3. Direct labor is a part of both prime cost and conversion cost. True False 4. Wages paid to production supervisors would be considered direct labor. True False 5. Direct material cost combined with manufacturing overhead cost is known as conversion cost. True False 6. Advertising is a product cost as long as it promotes specific products. True False 7. Although depreciation is always a period cost in a merchandising firm, it can be a product cost in a manufacturing firm. True False
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Chapter 002, Managerial Accounting and Cost Concepts 2-6 8. In a manufacturing firm, all costs are product costs. True False 9. The cost of shipping parts from a supplier is considered a product cost. True False 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 False 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.
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