Reference no: EM131137348

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.
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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.
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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.
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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.
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False

8. Glues and screws are variable costs in a furniture company.
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False

9. Markup is the difference between the unit cost and the selling price of a product.
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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.
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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.
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False

14. Batch processing combines elements of individual-job and continuous-flow processing.
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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.
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False

16. In parallel processing the flow of products breaks off at some point so that different units go through different processing departments.
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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.
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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.
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False

19. A company's margin of safety is the excess of the breakeven point over actual sales.
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False

20. GAAP requires that absorption costing be used to prepare internal reports.
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False

21. Direct labor, direct labor dollars, and machine hours are examples of activity bases.
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False

22. The actual overhead rate is found using estimated overhead costs divided by the estimated activity level.
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False

23. If a company produces more than one type of product, some products are likely to be produced in higher volume than others.
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False

24. Plant supervision is a unit-level cost.
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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