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:

Hardware

The visible parts of a computer system (keyboard, disk drive, monitor, and printers).

Software

Computer programs necessary for directing the computer hardware to perform specific functions; refers to the application programs containing instructions to the computer that enable it to perform tasks. A computer, by itself, cannot do anything without software for accessing and inputting data.

CPU

The Central Processing Unit, also known as the CPU, is the main element of a computer responsible for executing the majority of computations within the system.

Hardware

The physical components of a computer system, including the processor, memory devices, and peripherals.