Answer the following statements true (T) or false (F)
1. Production cost reports prepared using the first-in, first-out (FIFO) method determine the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs
2. Production cost reports prepared using the first-in, first-out (FIFO) method assume that the first units started in the production process are the last units completed and sold.
3. Production cost reports prepared using first-in, first-out (FIFO) method determine the average cost of equivalent units of production by combining beginning inventory costs with current period costs.
4. Production cost reports prepared using the first-in, first-out (FIFO) method assume that the first units started in the production process are the first units completed and transferred out.
5. Under the first-in, first-out (FIFO) method, the current period equivalent units of production for the units in the beginning inventory are always 100% complete.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
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A company decides to ignore a very small error in its inventory balance. This is an example of the application of the ________.
A) conservatism B) materiality concept C) disclosure principle D) consistency principle
Open questions usually seek single word answers
Indicate whether the statement is true or false
To expand sales, Sandine Corporation is evaluating whether to purchase a machine to manufacture a new product line. Which of the following statements is correct concerning an expansion analysis like the one Sandine faces?
A. The machine's annual depreciation expenses will be deducted from the firm's net income to calculate its supplemental operating cash flows. B. The new machine will be acceptable as long as the sum of its net cash flows is positive. C. The shipping and installation costs associated with purchasing the new machine are included in the computation of its initial investment outlay. D. The cost of a feasibility study that Sandine conducted last year to determine whether to further evaluate the introduction of the new product line should be included in the calculation of the new machine's initial investment outlay. E. The salvage value of the new machine should be included in the computation of its initial investment outlay.
According to the EPA, in order to avail itself of the third-party defense, one of the steps a prospective purchaser must do is hire an environmental professional to conduct a site assessment
a. True b. False Indicate whether the statement is true or false