State whether the following statements are true or false. If false, explain why.

(a) A cost is an actual past expenditure.

(b) When recovering costs for pricing we use total absorption costing. However, for stock valuation we use absorption costing or marginal costing.

(c) When using traditional total absorption costing it is important to identify activity cost drivers.

(d) In batch costing if we had 100 units that were 50% complete this would equal 50 equivalent units.

(e) In stock valuation, marginal costing is normally used in valuing stock in financial reporting. LO1