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. Information prepared using allocated costs often is used in evaluating the performance of managers.
2. Information prepared using allocated costs should not be used in budgeting and resource allocation decisions within a company.
3. A cost that is indirect with respect to one cost object may be direct with respect to other cost objects.
4. Fixed costs generally are direct costs, and variable costs generally are indirect.
5. An allocation base causes a cost to be incurred.