11.

When materials are purchased in a process costing system, a materials account is debited with the cost of the materials.

True

False

12.

The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:

True

False

13.

In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs.

True

False

14.

The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added during the period.

True

False

15.

Both job-order and process costing systems use averaging to compute unit product costs.

True

False

16.

Incremental analysis is generally the most complicated and least direct approach to decision making.

rev: 10_13_2014_QC_55018

True

False

17.

On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any activity level above the break-even point.

True

False

18.

For a capital intensive, automated company the break-even point will tend to be higher and the margin of safety will be lower than for a less capital intensive company with the same sales.

True

False

19.

The margin of safety in dollars equals the excess of actual sales over budgeted sales.

True

False

20.

If two companies produce the same product and have the same total sales and same total expenses, operating leverage will be higher in the company with a higher proportion of fixed expenses in its cost structure.

True

False