True or False questions

1.Price must be greater than cost in order for the firm to generate revenue.

2.Assigning costs tells the accountant who spent the money.

3.Direct costs are those costs that cannot be easily and accurately traced to a cost object.

4.The difference between actual overhead and applied overhead is called an overhead variance.

5.The work-in-process account consists of all the job-order cost sheets for the completed jobs.

6.Variable costing and absorption costing income statements may differ because of their treatment of fixed factory overhead.

7.Inventory costs under variable costing include only direct materials, direct labor, and variable factory overhead.

8.Inventory under absorption costing includes only direct materials and direct labor.

9.If the number of units produced in a period is larger than the number of units sold in a period, absorption costing income will be greatly higher than variable costing income.

10. Unit-level activities are performed each time a unit is produced.