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True/False



 This activity contains 10 questions.

Question 1.
Cost assignment involves only tracing accumulated costs with direct relationship to a cost objective.

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End of Question 1


Question 2.
Cost allocation describes the assignment of direct costs to a particular cost object.

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Question 3.
The cost object has no bearing on whether a cost is direct or indirect.

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Question 4.
All fixed costs are considered indirect.

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Question 5.
A unit cost is valid at only one level of production.

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Question 6.
Service companies always have a finished goods inventory on their balance sheets.

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Question 7.
Merchandising companies do not normally manufacture a product.

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Question 8.
Manufacturing companies normally have three types of inventories on their balance sheets.

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Question 9.
Inventoriable costs are expensed in the same period in which they are incurred.

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Question 10.
Electricity for a production line is considered an inventoriable cost.

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End of Question 10





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