1. The combined total of direct materials costs and direct labor costs incurred by a production department is known as Conversion Costs.

Group of answer choices

True

False

2. Businesses use the step method of cost allocation when they want to acknowledge that service centers provide support to other service centers.

Group of answer choices

True

False

3. In an organization that has multiple processes, the manager for Process #3 cannot control the amount of Transferred-In Costs assigned to him/her from earlier processes, but it still held responsible for those costs, and they will be part of the Cost of Production Report for Process #3.

Group of answer choices

True

False

4. In a job order costing system, the total manufacturing costs assigned to each job are divided by the number of units produced for that job to compute product unit costs.

Group of answer choices

True

False

5. Application of overhead to jobs in a job order system occurs at the end of a period or as jobs are completed, whichever is later.

Group of answer choices

True

False

6. Process costing's equivalent units of production must be computed before the value of ending inventory can be determined.

Group of answer choices

True

False

7. All of the costs assigned on the job's job cost sheet are moved to the Finished Goods Inventory account at the time the job is completed.

Group of answer choices

True

False