True or false 1. The balance of the Finished Goods Inventory account includes all manufacturing costs incurred to date for goods in various production stages but not yet completed. 2. The main features of service businesses are that they have little or no inventory and that labor costs account a large portion of its total costs. 3. Knowing the cost of providing services is not important in contract bidding as well as in deciding what types of services will be offered to the general public. 4. The basic document used to accumulate costs for a service business using job order costing is the job order cost sheet. 5. The cost accounting system must be designed to determine total production costs as well as the unit production cost. 6. One of the most important aspects of cost accounting is the preparation of reports that management can use to plan and control operations. 7. The payroll-related costs of factory workers such as sick leave with pay, vacation pay, retirement program contributions, and other fringe benefits are usually treated as indirect labor costs. 8. Job Order Cost Sheet is the subsidiary record for the controlling account Work in Process Inventory. 9. Opportunity cost is the value of benefit sacrificed in favor of an alternative course of action. 10. The plant manager's salary is not considered an engineered cost because it does not have a direct cost relationship to outputs. 11. Not all selling and administrative expenses are treated as period costs. 12. Period costs are expensed on the income statement in the period in which they are incurred using the usual rules of accrual accounting. 13. The cost of operating finished goods warehouse is classified as a selling cost. 14. The cost of an advertising campaign dedicated to a specific product is an indirect cost of that product while the salary of a marketing manager, who oversees numerous products, is a direct cost with respect to individual products. 15. If Skechers is assigning costs to its various regional and national sales offices, then the salary of the sales manager in its Tokyo office would be a direct cost of that office. 16. In 1772, Joshua Wedgwood became the world's first cost accountant. 17. Manufacturers that use a job order cost system are sometimes called job shops. 18. Any balance in the factory overhead control account should be carried over to the next accounting period. 19. The Finished Goods account is a controlling account for the subsidiary Finished Goods ledger or stock ledger. 20. Period costs are used in generating revenue during the current period but are not involved in the manufacturing process