True or False

1. Management uses a cost accounting system to evaluate and reward employee performance.

2. A debit balance in the manufacturing overhead account at month end indicates overhead applied to jobs was greater than the actual overhead costs.

3. In the target costing process, target price is computed by adding the desired profit margin to the target product cost

4. Just-in-time inventory systems are characterized by extremely large inventories of materials, works in process, and finished goods.

5. Internal failure costs happen when an unsatisfactory good or service is delivered to a customer.