Please indicate whether the following statements are true or false by circling a T or an...

  

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Please indicate whether the following statements are true or false by circling a T or an F 1. Direct and indirect materials may both come from the same source 2. Factory overhead includes the cost of selling and advertising the product | ] 3. Fixed costs remain constant in total, the average fixed costs becomes progressively smaller as the level of activity increases 4. Work in process represent goods that have some or all raw materials, some lab- our and some overhead 5. Because managerial accounting is not bound by GAAP, it has nothing to do with the accounting system relied on by financial accounting 6. The purpose of any managerial costing system should be to provide accounting information to assist management in carrying out its job. 7. A variable cost is one whose total dollar amount varies in direct proportion to changes in the activity level 8. Mixed costs are based on what management decides may be necessary to operate effic- iently at different times 9. The Contribution Margin Ratio shows how the Contribution Margin is affected by a change in total sales 10 It is impossible, or difficult to trace Manufacturing Overhead costs to a particular to a particular product or job Please indicate whether the following statements are true or false by circling a T or an F 1. Direct and indirect materials may both come from the same source 2. Factory overhead includes the cost of selling and advertising the product | ] 3. Fixed costs remain constant in total, the average fixed costs becomes progressively smaller as the level of activity increases 4. Work in process represent goods that have some or all raw materials, some lab- our and some overhead 5. Because managerial accounting is not bound by GAAP, it has nothing to do with the accounting system relied on by financial accounting 6. The purpose of any managerial costing system should be to provide accounting information to assist management in carrying out its job. 7. A variable cost is one whose total dollar amount varies in direct proportion to changes in the activity level 8. Mixed costs are based on what management decides may be necessary to operate effic- iently at different times 9. The Contribution Margin Ratio shows how the Contribution Margin is affected by a change in total sales 10 It is impossible, or difficult to trace Manufacturing Overhead costs to a particular to a particular product or job

Answer rating: 100% (QA)

Answer 1 True When same inventory account is maintained for direct material and indirect material both will come from same source Both materials are i... View the full answer