Read the questions and answer in true false of given question:
1. Prior to World War II, the United States produced about seventy-five percent of the world's total goods and services.
True
False
2. The value chain is the set of value-creating activities that extends from the production of raw materials to the sale and servicing of finished goods.
True
False
3. A particular accounting system that is adequate for one company may be inadequate for another because of differences in strategies, markets, production and delivery systems, and controls.
True
False
4. JIT and TQM are not compatible philosophies since JIT relates to inventory and TQM is a management philosophy.
True
False
5. One shortcoming of traditional managerial accounting systems is that they focus too much on cost drivers and not enough on reducing costs.
True
False
6. Product costs are the costs of resources consumed as part of administrative and selling activities during a fiscal period.
True
False
7. The costs of the significant raw materials from which a product is manufactured are classified as direct material costs.
True
False
8. Glues and screws are variable costs in a furniture company.
True
False
9. Markup is the difference between the unit cost and the selling price of a product.
True
False
10. A differentiated product has some distinguishing characteristic or quality for which consumers are willing to pay a premium.
True
False
11. Unit price is the difference between the price per unit of a product and the unit cost.
True
False
12. A predetermined overhead rate is an estimate of the amount of overhead that management believes should be assigned to a unit of product.
True
False
13. Process costing assigns the costs associated with a particular job to the units produced in that job.
True
False
14. Batch processing combines elements of individual-job and continuous-flow processing.
True
False
15. Equivalent units are the number of units that would have been produced during a period if all of the department's efforts had resulted in completed units.
True
False
16. In parallel processing the flow of products breaks off at some point so that different units go through different processing departments.
True
False
17. Cost-volume-profit (CVP) analysis is the use of an understanding of the relationship among costs, volume, and profits to make managerial decisions.
True
False
18. Target-profit analysis is a technique used to find the volume of sales - in units or dollars - at which a company just covers its total costs.
True
False
19. A company's margin of safety is the excess of the breakeven point over actual sales.
True
False
20. GAAP requires that absorption costing be used to prepare internal reports.
True
False
21. Direct labor, direct labor dollars, and machine hours are examples of activity bases.
True
False
22. The actual overhead rate is found using estimated overhead costs divided by the estimated activity level.
True
False
23. If a company produces more than one type of product, some products are likely to be produced in higher volume than others.
True
False
24. Plant supervision is a unit-level cost.
True
False
25. The direct materials budget identifies the amount of materials that will be required to support a company's total production needs.
True
False