TRUE OR FALSE

1. Overapplied factory overhead that is immaterial in amount is closed to cost of goods sold at year end. True or False
2. A variable cost remains constant on a per-unit basis as production increase. True or False
3. Activity based costing conforms to GAAP regarding which cost should be expensed. True or False
4. Activity based costing is appropriate for a company that manufactures a wide variety of products. True or False
5. A company that manufactures small quantities of identifiable product will use job order costing system True or False
6. In Job order costing systems, cost are accumulated for each individual job. True or False
7. In an actual job- order costing system, factory overhead is assigned to job continuously during the production process. True or False
8. A traditional costing system has fewer cost pools that does an activity-based costing (ABC) system True or false