Indicate Whether Each of the Following Statements Is True or False

question 92

Short Answer

Indicate whether each of the following statements is true or false.
The purchase of raw materials for cash is an asset use transaction.______
Using raw materials in a job-order costing system increases work in process inventory.______
Wages paid to production workers are recorded as wages expense.______
When a company has finished making a product,it applies estimated manufacturing overhead costs to the product.______
A company might use machine hours to assign overhead costs to products if it has identified a cause-and-effect relationship between machine time and overhead costs.______

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, and therefore should not influence future business decisions.

Opportunity Costs

The cost of the next best alternative that is foregone when a decision is made.

Unitising Costs

The process of breaking down costs into smaller, individual pieces or units to better analyze and manage them.

Quantitative Information

Data or information that can be measured and expressed numerically, facilitating objective analysis and decision-making.