Indicate Whether Each of the Following Statements Is True or False

question 99

Short Answer

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

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Definitions:

Consumption

The process of using goods and services for personal needs or wants, often leading to a decrease in the quantity of the consumed goods.

Utility Function

A mathematical representation that assigns a level of satisfaction or utility to combinations of goods and services consumed.

Spaghetti Consumption

The quantity or rate at which individuals or populations eat spaghetti, of interest in studies of dietary patterns, cultural habits, and nutrition.

Consumptions

The process of using up goods and services to satisfy individual or collective needs or desires, often analyzed in economic contexts.