Determine whether each statement is true or false. A. Freight costs incurred in shipping products to...

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Accounting

Determine whether each statement is true or false.
A. Freight costs incurred in shipping products to customers isproperly referred to as a product rather than period cost of theselling company.
B. Period costs include all selling and administrative costs,both variable and fixed.
C. The salary of a manufacturing quality control inspector wouldtypically be accounted for as manufacturing overhead.
D. A retail merchandising company's cost of goods sold typicallyincludes part of store utility costs.
E. A manufacturing company's cost of goods sold includes onlyproduct costs.
F. The basis used to apply manufacturing overhead in a job ordercost system based on a predetermined overhead rate should be ameasurable activity which correlates with or drives overheadcosts.
G. Managerial accounting is governed by rules issued by theAICPA
H. If sales price and fixed costs remain constant while variablecosts per unit increase, the number of units needed to be sold toreach the break-even point increases.
I. Unrecoverable past costs are always irrelevant in evaluatingfuture business decision alternatives.

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4.5 Ratings (731 Votes)

True Reason Shipping cost are directly relating to product hence It is treated product cost False Reason Some of the cost might be product costs Product costs are that cost which is included in the cost of the product Period costs are See Answer

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Determine whether each statement is true or false.A. Freight costs incurred in shipping products to customers isproperly referred to as a product rather than period cost of theselling company.B. Period costs include all selling and administrative costs,both variable and fixed.C. The salary of a manufacturing quality control inspector wouldtypically be accounted for as manufacturing overhead.D. A retail merchandising company's cost of goods sold typicallyincludes part of store utility costs.E. A manufacturing company's cost of goods sold includes onlyproduct costs.F. The basis used to apply manufacturing overhead in a job ordercost system based on a predetermined overhead rate should be ameasurable activity which correlates with or drives overheadcosts.G. Managerial accounting is governed by rules issued by theAICPAH. If sales price and fixed costs remain constant while variablecosts per unit increase, the number of units needed to be sold toreach the break-even point increases.I. Unrecoverable past costs are always irrelevant in evaluatingfuture business decision alternatives.