12) In calculating cost per equivalent unit under the weighted-average method, prior period costs are combined with current period costs 13) A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing. 14) Waste on the production line will result in an unfavorable materials price variance. 15) Material price variances are often isolated at the time materials are purchased, rather than when they 16) The following entry would be used to record depreciation on manufacturing equipment: are placed into production, to facilitate earlier recognition of variances. Manufacturing Overhead 17) In a CVP graph (sometimes called a break-even chart), unit volume is represented on the horizontal (Y) axis and dollars on the vertical CX) axis. 18) Companies using Activity Based Costing may choose to assign selling and administrative costs to inventory even though this is not allowed by generally accepted accounting procedures that govern external reporting practice. 19) Activity Based Costing Systems will be cheaper to operate than conventional accounting systems because they use fewer indirect cost pools. 20) The following entry would be used to record the transfer of $40,000 of direct material and S10,000 of indirect material from the storeroom to production: Direct Materials Indirect Materials 10,000 Raw Materials 21) In the beginning of the year budgeting process, the purchases budget is done before the production budget 22) The basic idea underlying responsibility accounting is that a manager should be held responsible for those items-and only those items that the manager can actually control to a significant extent