T or F 1. Process cost accounting is the method to be used in assigning costs to products which are manufactured on the basis of each order received. 2. In process costing, the transferred costs would be treated by the receiving department as materials at the start of the process. 3. A characteristic of process costing is that production in process at the end of a period is restated in terms of completed units. 4. Abnormal spoilage is not inventoriable because it is not an inherent result of the manufacturing process. 5. In a process costing system, a Finished Goods account is maintained for each department.

6. It is important to identify conversion costs with each customer order in a process costing system.

7. If materials are added 100% at the end of the process, then the work in process end will get 100%. 8. In a process cost system, costs incurred in one department remain there rather than being transferred on the next department. 9. Hybrid costing makes use of the aspects of both job order and process costing. 10. On a production report, labor and overhead costs are combined together and called prime costs.