Inventory is a concern only for manufacturing companies.
Answer the following statement true (T) or false (F)
False
Rationale: Inventory is a concern for all companies because it ties up funds that are not actively productive.
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Answer the following statement true (T) or false (F)
The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) 
What is the fixed cost per month using the high-low method to estimate the cost equation?
A. $600. B. $2,250. C. $1,140. D. $570.
For a manufacturing company, both direct labor costs and indirect labor costs are classified as product costs.
Answer the following statement true (T) or false (F)
______ are high-volume product processes that typically produce standardized products and require identical or similar operations.
A. Line processes B. Intermittent processes C. Machine processes D. Outlier processes