10. Trade Goods is related to goods which are purchased for resale without making any modifications or additions. a) true b) false 11. Cost of goods sold is recognized when the product is manufactured. a) true b) false 12. Direct Labor is a cost component. a) true b) false 13. Direct costs are calculated by using an appropriate allocation method. a) true b) false 14. The variable total cost changes with respect to the volume of production.