True or False Accounting

TF 6. Conversion costs consist of direct materials and direct labor costs. 7. Prime costs consist of direct labor and factory overhead costs. TF TF 8. Administrative expenses are incurred in managing the company and are not directly related to manufacturing or selling functions. 9. An abbreviated income statement is revenues minus costs equal net income. TF TF 10. Materials flow from the material inventory to work in in process inventory to finished goods inventory to cost of goods sold in the income statement