True False 1. Managerial accounting is primarily concerned with external users of the organization rather than with segments of the organization. 2. Managerial accounting places more emphasis on standards than financial accounting. 3. Direct labor is a part of both prime cost and conversion cost. 4. Wages paid to administrative staff would be considered direct labor. 5. Direct material cost combined with manufacturing overhead cost is known as conversion cost. 6. Advertising is a product cost as long as it promotes specific products. 7. Although depreciation is always a period cost in a merchandising firm, it can be a product cost in a manufacturing firm. 8. In a manufacturing firm, all costs are product costs. 9. The cost of shipping direct material from a supplier is considered a product cost. 10. If the finished goods inventory increases between the beginning and the end of a period, then the cost of goods manufactured for the period is larger than the cost of goods sold