True/False

Please write T if the statement is true or F if the statement is false:

____1. Job-order costing systems are used when the unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job.

____2. Costs can be classified only as direct or indirect.

____3. An allocation base, such as direct labor hours, or machine hours, is used to assign manufacturing overhead to products.

____4. The predetermined overhead rate (POHR) used to apply overhead to jobs is determined before the period begins.

____5. Under absorption costing, all production costs, variable and fixed, are included when determining unit product cost.

____6. Under variable costing, only the variable production costs are included in product costs.

____7. A segment is any part or activity of an organization about which a manager seeks cost, revenue, or profit data.

____8. Common fixed costs arise because of the existence of a particular segment and would disappear over time if the segment itself disappeared.

____9. ABC does not use more cost pools than the traditional costing system.

____10. The term cost driver is also used to refer to an activity measure.