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  3. 1. operating overhead is expensed as an operating

1. Operating overhead is expensed as an operating expense, whereas manufacturing overhead is capitalized in...

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Accounting

1. Operating overhead is expensed as an operating expense, whereas manufacturing overhead is capitalized in work-in-progress (WIP) inventory.

True or False.

2. When a firm impairs an asset, cash flows are not affected but net income increases.

True or False

3. The market-to-book ratio is typically above 1 because market capitalization is forward looking, whereas book value is largely historical or backwards looking.

True or False

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