c) d) Just-in-Time (JIT) Management 12) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. a) True b) False 13) Manufacturing overhead is also referred to as a) direct manufacturing costs b) period costs c) indirect manufacturing costs d) prime costs 14) Allen Services purchased 20 delivery vehicles by issuing a 20-year installment note payable for $720,000. On the statement of cash flows, this transaction would be shown in the a) financing activities section b) operating activities section c) non-cash investing and financing activities section d) investing activities section 15) Which of the following statements is TRUE of absorption and variable costing methods? a) Both costing methods consider fixed manufacturing overhead to be product costs. b) Variable costing considers variable selling and administrative costs to be product costs. c) Absorption costing considers fixed manufacturing overhead to be period costs. d) Both costing methods consider selling and administrative costs to be period costs. 16)Which of the following is most likely a service company? a) a car dealership b) a bakery c) a grocery store d) a law firm 17) Manufacturing overhead is also referred to as a) direct manufacturing costs b) period costs c) indirect manufacturing costs d) prime costs 18) When preparing the statement of cash flows using the indirect method, a loss on the sale of p' assets must be shown as a subtraction from the investing activities section. a) True b) False