23. A service organization will not use the job order costing method because it has no direct materials. a. True b. False 24. The direct materials costs and direct labor costs incurred by a production department are referred to as conversion costs. a. True b. False 25. Ir the property tax rates are increased, this change in fixed costs will result in a decrease in the break-even point a. True b. False 26. The first budget to be prepared is usually the production budget. a. True b. False 27. The Sustainability Accounting Standards Board (SASB) standards are required, just as GAAP standards are required a. True b. False 28. The cost of production report reports the costs charged to production and the costs allocated to finished goods and work in process a. True b. False 29. Even if a business sells six products, it is possible to estimate the break-even point. a. True b. False 30. If fixed costs are $500,000 and variable costs are 60% of break-even sales, profit is so when sales revenue is $930,000 a. True b. False 31. All costs of the processes in a process costing system ultimately pass through the cost of goods sold account. a. True b. False Page in Poren hy Coanoro