TRUE OR FALSE

1. Managerial accounting must follow GAAP.

2. Financial accounting reports to those inside the organization.

3. Manufacturing Overhead ? includes all manufacturing costs except direct materials and direct labor manufacturing overhead includes items such as indirect materials.

4. Managerial accounting emphasizes decisions affecting the future.

5. Manufacturing costs are product costs.

6. In a period of rising purchase costs, the FIFO flow assumption tends to minimize taxable income.

7. Period costs include direct materials, direct labor and manufacturing overhead.

8. In general, a firm should undertake a project only if it