Part I- True or False (22.5 points) 1. A production process may yield a tangible product or a service and their unique characteristics determine the best approach for developing a cost management system. 2. Inseparability means that production and consumption are inseparable for services. 3. The uniqueness of the products or units for cost accounting purposes relates to their common costs. 4. Activity level is the average activity usage over the long term and normal activity level is the production level for one year. 5. Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other. 6. When materials are purchased, the costs of the materials "flows" into the materials inventory account. 7. Abnormal spoilage is charged to the job that caused it. 8. A 9. The prod work-in-process department. 10. In JIT manufacturing, work cells are created that produce a product from start to finish. 11. In firms with ending work-in-process inventories, output is measured using equivalent units. 12. The FIFO method unit costs are used to value output that is related to future periods. 13. The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period when calculating unit cost 14. Transferred-in goods, must be converted to the units of measure used by the current department. 15. In operation costing, job-order procedures are used to assign direct materials costs and process process is a series of activities or operations, which are linked to perform a specific objective. uction report is the document that summarizes the manufacturing activity that takes place in a procedures are used to assign conversion costs