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. Estimated cost data must often be used in making decisions because actual cost information is not yet available.
2. Managers often accumulate both estimated and actual cost data for the same cost object.
3. A direct cost must be allocated to a cost object.
4. For a department in a retail store, cost of goods sold is a direct cost.
5. Determining whether a cost is direct or indirect depends on the selection of cost object.