PART 1: True/False Circle the letter for the best answer for each question Property taxes, rent, and insurance premiums paid on a factory building are examples of manufacture overhead. A) True B) False A variable cost is a cost whose cost per unit varies as the activity level rises and falls. A) True B) False A mixed cost is partially variable and partially fixed. A) True B) False The use of predetermined overhead rates in a job-order cost the system makes it possible to estimate total cost of a given job as soon as production is completed. A) True B) False A process cost system would be used to account for the costs associated with the construction of a A) True B) False When computing the cost per equivalent unit, it is not necessary to consider the percentage completion of the units in beginning inventory under the weighted-average method. A) True B) False