TRUE OR FALSE

1. Selling and administrative costs are always period costs on any type of companys income statement

2. Costs that a manager can influence significantly are classified as uncontrollable costs of that manager

3. When goods are sold, their costs are transferred to Finished Goods Inventory

4. Equivalent-unit calculations are necessary to allocate manufacturing costs between units sold and ending work in process

5 Engineering design costs are typically known as batch-level activities

6 Activity-based costing systems have a tendency to distort product costs

7 There are six important factors when selecting appropriate cost drivers

8 Total contribution margin is defined as total sales revenue plus total variable expenses