I. Process costing is typically used for businesses that make unique goods in relatively small amounts A. TRUE B. FALSE When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs. A. TRUE FALSE 3. Prime costs include direct labor and direct materials. A. B. TRUE FALSE 4. A product's contribution margin per unit is the excess of the selling price per unit over the variable cost of obtaining and selling each unit. 5. The breakeven point is the sales level where operating income is positive. 6. The margin of safety is the excess of expected sales over breakeven sales. A. TRUE B. FALSE A. TRUE B. FALSE A. TRUE B. FALSE 7. Total fixed costs change in response to changes in the volume of production. A. TRUE B. FALSE 8. The variable cost per unit of activity increases as activity increases. A. TRUE B. FALSE 9. Cost distortion is more likely to occur when departments incur different types of overh and the products ore jobs use the department to a different extent. A. TRUE B. FALSE 10. Testing is not considered as preventive cost. A. TRUE B. FALSE