Indicate whether the statement is true or false. A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process 2. The range of activity over which changes in cost are of interest to management is called the relevant range. 3. Managerial accounting reports must be useful to the user of the information. 4. For an automotive repair shop, the wages of mechanics would be classified as direct labor cost A law firm would use a job order cost system to accumulate all of the costs associated with a particular clie engagement, such as lawyer time, copying charges, filing fees, and overhead. 5. 6. If the principal products of a manufacturing process are identical, a process cost system is more appropriate 7. The direct labor costs and factory overhead costs incurred by a production department are referred to as 8. The fixed cost per unit varies with changes in the level of activity than a job order cost system conversion costs. Multiple Choice ldentify the choice that best completes the statement or answers the question 1. The cost of a manufactured product generally consists of which of the following costs? a. Direct materials cost and factory overhead cost b. Direct labor cost and factory overhead cost c. Direct labor cost, direct materials cost, and factory overhead cost d. Direct materials cost and direct labor cost A company manufactured S0,000 units of a product at a cost of $250,000. They sold 40,000 units for $10 each. What is Gross Margin? a. $150,000 b. $200,000 c. $400,000 d. $250,000 2. 3. Which of the following would be most likely to use process costing? a. A custom furniture manufacturer. b. An auto body repair shop. c. A law firm d. A lawn fertilizer manufacturer