Indicate Whether Each of the Following Statements Is True or False

question 31

Essay

Indicate whether each of the following statements is true or false.
Estimated cost data must often be used in making decisions because actual cost information is not yet available.
Managers often accumulate both estimated and actual cost data for the same cost object.
A direct cost must be allocated to a cost object.
For a department in a retail store, cost of goods sold is a direct cost.
Determining whether a cost is direct or indirect depends on the selection of cost object.

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Definitions:

Treasury Shares

Previously outstanding shares repurchased by a corporation that are not canceled or restored to unissued status.

Repurchased Shares

Stocks that have been bought back by the issuing company from shareholders, reducing the amount of outstanding shares on the market.

Outstanding Shares

A corporation’s shares currently held by shareholders.

Articles of Incorporation

A paper submitted to the state authorities to formally set up a corporation.