Please do not mark on the exanm Answer True or False for questions 1-20 I.) A direct cost is a cost that can be easily traced to the particular cost object under consideration. 2.) A cost can be direct or indirect. The classification can change if the cost-object changes. 3.) Opportuni 4.) Selling and administrative expenses are period costs under generally accepted accounting principles. 5.) Actual overhead costs are not assigned to jobs in a job costing system. ty costs at a manufacturing company are not part of manufacturing overhead 6.) The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple predetermined overhead rates are often used in larger companies. 7.) If a company closes any underapplied or overapplied manufacturing overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be debited if manufacturing overhead is overapplied for the period 8.) When raw materials are purchased, they are recorded as an asset. 9.) The following entry would be used to record the transfer of $40,000 of direct material and $10,000 of indirect material from the storeroom to production: Direct Materials Indirect Materials 40,000 10,000 Raw Materials 50,000 10) Entry (16) in the below T-account represents the cost of goods manufactured transferred to Finished Goods from Work in Process. Finished Goods Ba1 (15) Bal 40,000 (16) 520,000 540,000 60,000 11.) In a process costing system, costs are traced directly to jobs