I

TEST I. TRUE 0R FAlSE: (Write TRUE is the statement is correct and FALSE if incorrect). 1. The cost of production report is an analysis of the activity in a department or cost center for the period. 2. The quantity schedule accounts for the physical flow of units into and out of the department. 3. Total ordering costs vary proportionately with total carrying costs. 4. The purchasing agent performs the approval and checking of invoices. 5. The receiving department matches materials received with descriptions on purchase orders. 6. Under FIFO method, the price for each items received and issued are individually computed. 7. Weighted average method is used in perpetual inventory system. 8. The accuracy of the perpetual inventory method need not be checked by actual physical c0unt. 9. In period of rising prices, the use of FIFO increases the net income of a company. 10. The cost of normal units are reported as product cost because they will eventually become part of the good units