C False 2.(0) A cost pool is a collection of costs that are related to the same or similar activity- True False 3.(1) Product costs are selling expenses that appear on the income statement. True False 4. (i) Period costs are recognized in the period in which the costs are incurred and placed on the income statement as part of Cost of Goods Sold. True C False 5. (1) Direct labor and overhead costs that are required to convert raw materials into finished goods are considered to be conversion costs. True False 6. (1) Job order costing is appropriate for businesses that produce mass quantities of identical units using the same amount of direct materials, direct labor, and manufacturing overhead. True C False 7. () An overhead application rate is computed by dividing the estimated overhead costs by the expected amount of units in the activity base. True False 8. (1) Costs flow through a process costing system in the same sequence as actual products move through the assembly process. True C False