Statement I: Indirect manufacturing costs include the compensation of all manufacturing labor that cannot be traced to the cost object in an economically feasible way. Statement II: The inventory of raw materials on hand at the end of a period is considered an asset, but work-in-process is not considered an asset until production is completed. O Only Statement II is True O Both Statements are False O Both Statements are True O Only Statement I is True Question 12 Statement I: As to cost behavior, and external reporting, GAAP requires that costs be classified as either variable or fixed. Statement II: Insurance can be classified as either an inventoriable cost or a period cost, depending on what is being insured. O Both Statements are False Only Statement II is True O Both Statements are True O Only Statement I is True Question 13 Statement I: Business risks should be identified and managed to mitigate effectively. Statement II: Poor weather conditions are realities that cannot be avoided and nothing can be done about it. O Only Statement I is True O Both Statements are False O Both Statements are True O Only Statement II is True Statement I: All indirect costs are conversion costs. Statement II: Wages paid to a timekeeper in a factory are a conversion cost. O Only Statement | is True Only Statement II is True O Both Statements are True O Both Statements are False