14. Which of the following statements is (are) false? (1). In general, the term expense is used for managerial purposes, while the term cost refers to external financial reports. (2). An opportunity cost is a benefit forgone by selecting one alternative over another A. Only 1 is false. B. Only 2 is false. C. Both 1 and 2 are false. D. Neither 1 nor 2 are false. 15. A manager is trying to estimate the manufacturing costs of a new product. The company, makes several other products that utilize some of the same manufacturing procedures as the new product. Which cost estimation method would be the best method to determine the total cost of manufacturing the new product? A. Engineering estimates. B. Regression analysis. C. Account analysis. D. High-low. 16. The Work-in-Process Inventory of the Rapid Fabricating Corp. was $3,000 higher on December 31, 2012 than it was on January 1, 2012. This implies that in 2012 A. Cost of goods manufactured was higher than cost of goods sold. B. Cost of goods manufactured was less than total manufacturing costs C. Manufacturing costs were higher than cost of goods sold. D. Manufacturing costs were less than the cost of goods manufactured 17. Which of the following statements is true? A. Operating income under variable costing equals contribution margin less operating expenses B. When sales exceed production, absorption costing income will be higher than variable costing income C. If units produced are greater than units sold Variable costing will have a higher profit than absorption costing D. When production exceeds sales, absorption costing income will be higher than variable costing income