True or False

6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are treated as period costs. 13. Job costing uses subsidiary ledgers to track the costs of individual jobs. 14. An example of a source document in a job costing system is a materials requisition form. 15. Manufacturing overhead includes all production costs except direct materials and direct labour 16. A job can be an individual product or a batch of products. 17. Variable overhead includes costs such as management salaries and insurance. 18. Organisations can use single or multiple overhead cost pools. 19. When the nature or level of overhead differs across activities or departments the organisation should use a single overhead cost pool. 20. An allocation base is chosen for each department in job costing. 21. The allocation base is a measure of activity that is used to allocate costs to a cost object. 22. The allocation rate in job costing is the dollar amount per unit of allocation base used to allocate overhead to each cost object 23. The estimated allocation rate equals actual overhead cost divided by estimated quantity of allocation base 24. In actual costing overhead is allocated using the actual quantity of the allocation base multiplied by the actual allocation rate. 25. In both actual and normal costing the actual cost of direct materials and direct labour is recorded. 38. The accounting method for assigning production costs to mass produced products is process costing. 39. Process costing assigns costs to cost pools and allocates the costs to individual units in a two stage process. 40. The cost pools used in process costing are typically overhead cost pools