I.TRUE / FALSE QUESTIONS (1-10) 1. The Cost of Production Report calculates the cost of the units transferred out 2. The CPR does not calculate the cost of the units in process at the end of the month 3. Equivalent units are units that received both direct materials and conversion costs in the current month 4. The beginning inventory of the current month is equal to the ending inventory of the prior month 5. Conversion cost is the sum of direct materials and direct labor in the CPR 6. The manufacturing of chicken soup requires process cost accounting techniques 7. A budget is a business plan expressed in terms of money 8. A company with high fixed costs usually has a high operating leverage 9. In a continuous budget you always budget for twelve consecutive months by dropping one month and adding the next month 10. A job order cost accounting system can be used in the service industry, ie., a legal trial or a public hospital