Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
1. Cost accumulation refers to identifying whether a particular cost is fixed or variable.
2. Cost objects may be departments, sales territories, or individual products.
3. Cost accumulation is not useful in a service-type business.
4. An allocation base has a cause-and-effect relationship with a cost object.
5. Timeliness of managerial accounting information is more important than its precision.