Accounting Chapter 1
Manufacturing costs include ______. Multiple select question. direct materials direct labor administrative costs manufacturing overhead selling costs
Direct materials, direct labor, and manufacturing overhead
All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead. True false question.
False
A laptop computer manufacturer would consider the computer's processor chip to be a(n) ______ cost. Multiple choice question. direct labor direct material manufacturing overhead indirect material
direct material
Other names for manufacturing overhead include ______. Multiple select question. factory overhead factory burden indirect manufacturing costs prime manufacturing costs
factory overhead, factory burden, and indirect manufacturing costs
Indirect labor costs include: Multiple select question. factory security guard wages assembly-line worker wages administrative assistant salary assembly-line supervisor salary
factory security guard wages, and assembly-line supervisor salary
A manufacturing cost that cannot be easily traced to a specific cost object is a(n) ______________cost.
indirect
Direct materials and direct labor are both ________ costs. Multiple choice question. manufacturing nonmanufacturing period selling and administrative
manufacturing
Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as _______.
manufacturing overhead
Indirect materials and indirect labor are classified as: Multiple choice question. manufacturing overhead nonspecific labor nonspecific materials period costs
manufacturing overhead
Cost objects include______. Multiple select question. organizational subunits / departments anything for which cost data is desired customers anything for which revenue data is desired
organizational subunits/departments, anything for which cost data is desired, and customers
Which of the following statements are true? Multiple select question. A sales manager's salary is a direct cost of the sales office in which they work. Direct cost can be easily and conveniently traced to specific cost objects. An individual cost is either direct or indirect, regardless of the cost object. A direct cost is sometimes referred to as a common cost.
A sales manager's salary is a direct cost of the sales office in which they work, and Direct cost can be easily and conveniently traced to specific cost objects.
The finished product of one company can become raw materials for another company. True false
True
Costs that can be easily and conveniently traced to a specific product are called Blank______ costs.
direct
Raw materials whose cost can be easily and conveniently traced to the finished product are ___________ materials.
direct
In an automobile manufacturing plant, the assembly-line workers are classified as __________ cost.
direct labor
Labor costs that can be easily and conveniently traced to specific products are ______ costs. Multiple choice question. indirect labor direct labor selling manufacturing overhead
direct labor
Prime costs include ______. Multiple select question. manufacturing overhead direct labor direct materials selling and administrative expenses
direct labor, and direct materials
The sum of direct materials and direct labor is called _____________ cost.
prime
A(n) ____________ is anything for which cost data are desired—including products, customers, plants, office locations, and departments. (Enter only one word per blank.)
Cost object
A type of indirect cost incurred to benefit more than one cost object is a(n) ______ cost.
common
Costs that are incurred to support a number of cost objects but cannot be traced to them individually are known as ______ costs. Multiple choice question. marginal sunk opportunity common
common
A factory produces a variety of tools. The factory manager's salary is a(n) Blank______ cost of a particular type of tool. Multiple choice question. direct traceable indirect
indirect
The term _______ materials refers to any materials used in the final product.
raw
