A manufacturing business reports three types of inventory on its balance sheet: direct materials, products in the process of being manufactured, and finished products.

a$.$ True

b$.$ False

Non$-$manufacturing costs are generally classified into two categories: selling and administrative.

a$.$ True

b$.$ False

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

a$.$ True

b$.$ False

The current year's advertising costs are normally considered as product costs.

a$.$ True

b$.$ False

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

a$.$ True

b$.$ False

Direct labor cost is an example of a product cost.

a$.$ True

b$.$ False

Indirect labor is included in factory overhead.

a$.$ True

b$.$ False

A job order cost system accumulates costs for each of the departments or processes within the factory.

a$.$ True

b$.$ False

A job order cost system provides for a separate record of the costs for each particular quantity of product that is manufactured.

a$.$ True

b$.$ False