T, F. A materials purchase price variance is bases on the quality of materials purchases, whereas a materials price variance is based on the quantity of materials used.

T, F. Variances are usually recorded in the general journal at the end of the month, except for the materials purchase price variance which is recorded at the time of purchase.

T, F. In process costing, standard costs for materials, labor, and factory overhead are charged to Work in Process Inventory during production.

T, F. A production volume variance arises when actual production is more or less than the standard volume required.

T,F. The flexible budget variance with a debit balance indicates that the actual overhead exceeds the flexible budget for overhead at the level of activity attained.

T,F. Service Businesses are important to the US Economy because nearly 90% of the US workforce serve the service industry.

T, F. Most service businesses use the job order costing system because of the uniqueness of their products.

T, F. Peanut -butter costing refers to the practice of assigning costs evenly to jobs by using an overhead rate when in fact different jobs consume resources in different proportions.

T, F. Activity-based costing is useful when different activities consume resources in equal proportions.