Question 5 Statement l: Cost of goods sold refers to the products brought to completion, whether they were started before or during the current accounting period. Statement II: Overtime premium is normally considered as a component of direct labor. o Only Statement Il is True o Both Statements are True o Only Statement is True O Both Statements are False Question 6 Statement I: The balance sheet, income statement, and statement of cash flows are used for financial accounting, and also for management accounting. Statement II: Financial accounting embraces special studies and forecasts, influence on employee behavior, and nonfinancial as well as financial information. o Both Statements are False o Only Statement is True O Only Statement Il is True O Both Statements are True Question 7 Statement l: For external reporting, GAAP requires that costs be classified as either variable or fixed. Statement II: Depreciation can be classified as either an inventoriable cost or a period cost, depending on what is being depreciated. O Both Statements are False o Only Statement il is True o Both Statements are True o Only Statement is True Question 8 Statement l: Management accounting emphasizes the financial consequences of past transactions, objectivity and verifiability, precision, and companywide performance. Statement II: Financial accounting emphasizes decisions affecting the future, relevance, timeliness, and segment performance. o Both Statements are True o Only Statement Il is True o Only Statement is True o Both Statements are False