1. Industries that typically use process cost systems include chemicals, oil, metals, paper, and pharmaceuticals. ____ 2. The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as (1) methods that ignore present value, and (2) present values methods. ____ 3. Variable costs are costs that remain constant in total dollar amount as the level of activity changes.
____ 1. Industries that typically use
____ 2. The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as (1) methods that ignore present value, and (2) present values methods.
____ 3. Variable costs are costs that remain constant in total dollar amount as the level of activity changes.
____ 4. As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.
____ 5. Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or processed further, these costs are not considered in deciding whether to further process a product.
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