TRUE/FALSE. Write "T' if the statement is true and 'F' if the statement is false. 26) Managerial accounting is designed to satisfy needs of external users including creditors, investors, and governmental agencies. 35) 27) Managerial accounting focuses primarily on the performance of the company as a whole. 36) 28) During its first year of operations, a company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300. 38) 29) A merchandising business paid $2,500 to purchase inventory and $50 to have the inventory delivered to its customers. Its product costs were $2,550. 40) 30) A manufacturing business paid $3,000 to purchase inventory. As a result, assets would increase by $3,000. 41) 31) Product costs include materials, labor, and selling and administrative costs. 43) 32) Average costs are used for internal decision-making, but actual costs are required for calculating cost of goods sold. 44) 33) Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold. 46)