True or False Questions:

55. When a job is completed and transferred to the finished goods warehouse the journal entry to record this is debit Cost of Goods Sold and credit Work in Process Inventory.

59. The book value of old equipment is NOT a relevant cost in an equipment replacement decision.

61. Managerial accounting is NOT governed by generally accepted accounting principles (GAAP).

62. Indirect costs, such as manufacturing overhead, are always fixed costs.

63. Lean production is a management approach that organizes resources such as people and machines around the flow of business processes and that produces units only in response to customer orders.

64. A continuous or perpetual budget is one that covers a 12-month period, but is constantly adding a new month onto the end of the 12-month period as the current month is completed.