CHAPTER 18 To the left of each question mark" T if the statement is true and mark F if the statement is false. 1. One of the usual differences between Financial and Managerial Accounting is the time dimension of the information reported. 2. Financial Accounting relies on accepted principles that are enforced through an extensive set of rules and guidelines while Managerial Accounting systems are flexible. 3. Managerial Accounting focuses on the whole organization. 4. Direct Materials are not usually easily traced to a product. 5. Product costs can be classified as of three types, Direct Material, Direct Labor or Period costs. 6. Cost concepts variable, fixed, direct, and indirect apply only to manufacture and not to service companies. 7. Factory overhead is charged to an expense as it is incurred because it is a period cost. 8. Raw Materials inventory includes only Direct Materials. 9. Indirect Labor refers to the cost of the workers whose efforts are not direct traceable to specific units or batches of a product. 10. The salary paid to the supervisor of an assembly line worker would normally be classified as indirect labor. 11. Outgoing delivery charges are included in direct materials costs. 12. For product costs, associated with a particular product to be expensed on the income statement the product must be sold 13. Cost of Goods Manufactured only appears in a manufacturing compan financial statements