TEST $1$: True or False$15$ points$1.$ The materials, labor and overhead costs incurred to produce a product are called period costs$\mathrm{.}2.$ Marketing, Selling and administrative costs are the three broad classification of costs incurred by a manufacturing company$\mathrm{.}3.$ Reports prepared in financial accounting are general$-$purpose reports, whereas reports prepared in managerial accounting are usually special$-$purpose reports$4.$ Controlling is the process of determining whether planned goals are being met$\mathrm{.}5.$ Product cost consists of the sum of prime cost and conversion cost$\mathrm{.}6.$ When computing trend percentages, the base year is always equal to $100\%\mathrm{.}7.$ Net income is typically used as the base in a vertical analysis of an income statement$\mathrm{.}8.$ Total assets is typically used as the base in a vertical analysis of a balance sheet$\mathrm{.}9.$ The relationship of each individual asset as a percentage of total assets is an example of vertical analysis$\mathrm{.}10.$ If the company has sales of P$250$ in $2010$ and P$225$ in $2011,$ the percentage increase from $2010$ to $2011$ is $10\%\mathrm{.}11.$ Determining the unit cost of manufacturing a product is an output of financial accounting$\mathrm{.}12.$ Period costs are found in both merchandising and manufacturing firms$\mathrm{.}13.$ A cost that is present under one alternative but absent in whole or in part under another alternative is known as differential cost$\mathrm{.}14.$ The salary paid to a factory foreman is classified as a factory overhead$\mathrm{.}15.$ Management accounting applies to all forms of business organization.