true or false

1. The weighted-average method of process costing can only be used if materials are added at the beginning of the production process. 2.In process costing, costs are accumulated in processing departments, rather than by job. 3.Most organizations that use ABC have two costing systems-the official costing system, which is used to prepare external financial reports, and the ABC system, which is used for internal decision making and for managing activities. 4.When combining activities in an activity-based costing system, activities should be grouped together at the same level. For example, batch-level activities should not be combined with unit-level activities. 5.Unit-level activities arise as a result of the total volume of production and are performed each time a unit is produced. 6. The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to products before they are assigned to customers. 7. In the preparation of financial statements using variable costing, fixed manufacturing overhead is treated as a period cost. 8. Variable costing is sometimes referred to as direct costing or marginal costing. 9. Under variable costing, the impact of both fixed manufacturing and non-manufacturing cost is emphasized because the total amount of such cost for the period appears in the income statement. 10. The unit product cost under absorption costing contains no element of fixed manufacturing overhead cost. 11. The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: Work in process, department Y XXX Work in process, department Z XXX V 3 SECTION 4 SECTION 5 New