Indicate whether the following statements are TRUE or FALSE 1- Financial accounting is considered to be the
Question:
Indicate whether the following statements are "TRUE" or "FALSE"
1- Financial accounting is considered to be the backbone to top management.
2- Cost accounting identifies, summarizes and interprets cost data to assist managers in determining the company's inventory.
3- To calculate product price we have to add liabilities to profit.
4- GAAP are needed in cost accounting rather than financial accounting to makeinformation users stand on solid ground otherwise fraud, misunderstanding, misinterpreting might occur.
5- Performance reports are used by cost accountants in the planning function.
6- A good cost accounting system should be characterized by being accurate and complex.
7- All overhead cost elements are considered to be direct costs.
8- Salaries of factory managers are considered to be indirect cost elements because the criteria of physical tracing is not verified.
9- A variable cost element does not change, in total, as the level of activity changes.
10- Overheads include all indirect materials and indirect labor only.
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton