A. Managerial accounting reports must be prepared according to generally accepted accounting principles. True False

B. Goods that are part way through the manufacturing process, but not yet complete, are referred to as materials inventory. True False

C. Depreciation on factory plant and equipment is an example of factory overhead cost. True False

D. Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost. True False

E. Conversion cost is the combination of direct labor cost and factory overhead cost. True False