1.The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.
A) False
B) True
2.Nonmanufacturing costs are generally classified into two categories: selling and administrative.
A) False
B) True
3.A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
A) True
B) False
4.If 10,000 units which were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)
A) False
B) True
5.If a company uses average costing instead of FIFO they will still get the same unit costs.
A) True
B) False
6.In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.
A) True
B) False
7.A process cost accounting system accumulates costs for each of the departments or processes within the factory.
A) True
B) False
8.Period costs are operating costs that are expensed in the period in which the goods are sold.
A) True
B) False
9.Generally accepted accounting principles require companies to use only one factory overhead rate for product costing.
A) True
B) False