True/False

1. Period costs can refer to expenditures necessary to finish products during the time period.

2. Total quality management (TQM) focuses on quality improvement and applies this standard to all aspects of business activities.

3. Enterprise risk management (ERM) includes the systems and process companies use to maximize the effect of risk.

4. A company's file of job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

5. Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

6. The schedule of cost of goods manufactured for a job costing system includes total actual factory overhead.

7. A company that produces a large number of standardized units would normally use a job order costing system.

8. Job order production systems would be appropriate for companies that produce training films for a specific customer or custom-made furniture to be used in a new five-star resort hotel.

9. Only product costs are recorded on job cost sheets.

10. The managers of process operations focus on the series of repetitive processes, or steps, resulting in a noncustomized product or service.

11. Equivalent units of production refer to the number of units that could have been started and completed given the costs incurred during the period.

12. Equivalent units of production for direct materials and direct labor are always the same.

13. If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, the equivalent units of direct labor in beginning Work in Process are 20,000.

14. Conversion cost per equivalent unit is the combined cost of direct labor and factory overhead per equivalent unit.

15. In a process costing system, factory overhead costs are allocated to production departments by using a predetermined overhead allocation rate.