Question:
Indicate whether each of the following statements is true or false.
Managerial accounting is for external use and gives less detailed information than financial accounting.
A manufacturer produces speedboats, and each one requires a motor. The motors are considered direct materials and are product costs.
A Pepsi-Cola bottling plant is an example of a company that would use a job cost system.
A predetermined overhead rate is calculated by dividing the expected level of activity by the estimated total overhead cost.
Overhead cannot be entered in Work in Process Inventory when using a predetermined overhead rate. Only when the actual overhead costs are determined is the overhead entered.
Selling and administrative expenses are part of period costs under both absorption and variable costing methods.