The direct material costs related to the cost center Material are EUR 1500000, the direct labor costs related to the cost center Production I are EUR 120000, and the direct labor costs related to cost center Production II are EUR 670000 in January

of year 23.

Calculate the allocation rate for the cost center Material (in %)!

Note: Please round your results to 2 decimal places!

When the production quantity is higher than the sales quantity in a period, the net income under absorption costing is always lower than the net income under variable costing in this period.

Classify this statement as either TRUE or FALSE!

A firm that produces multiple products in a joint-manufacturing process would most likely use job costing.

Classify this statement as either TRUE or FALSE!

Variable costing removes the effect of inventory changes from profit.

Classify this statement as either TRUE or FALSE!

When applying process costing, the same amount of manufacturing costs is assigned to each cost object.

Classify this statement as either TRUE or FALSE!

Cubic feet is an appropriate allocation base for heating costs.

Classify this statement as either TRUE or FALSE!

Linear depreciation of equipment used in the assembly of various products is an example of direct costs of one of these products.

Classify this statement as either TRUE or FALSE!

Products, customers, and sales regions are examples of cost objects.

Classify this statement as either TRUE or FALSE!

It depends on the cost object whether costs are considered as direct costs or indirect costs.

Classify this statement as either TRUE or FALSE!

Operating cost centers exist only to support other cost centers.

Classify this statement as either TRUE or FALSE!