Indicate Whether Each of the Following Statements Is True or False.Information

question 39

Short Answer

Indicate whether each of the following statements is true or false.Information prepared using allocated costs often is used in evaluating the performance of managers.Information prepared using allocated costs should not be used in budgeting and resource allocation decisions within a company.A cost that is indirect with respect to one cost object may be direct with respect to other cost objects.Fixed costs generally are direct costs, and variable costs generally are indirect.An allocation base causes a cost to be incurred.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Physical Inventory Count

A process of counting actual inventory to verify the quantity on hand, usually performed at the end of an accounting period.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production.

Long-Term Asset

A resource that is expected to provide economic benefits to a company for more than one fiscal year.