Chapter 1

T or F: A direct cost can be easily and conveniently traced to a specific cost object

True

T or F: A regional sales manager's salary would be a direct cost of the regional office in which the sales manager works

True

Include all costs associated with the general management of an organization rather than with manufacturing or selling

administrative costs

A dress manufacturer would consider the cost of relatively inexpensive items like thread to be part of ______. a. administrative costs b. indirect materials c. manufacturing overhead d. direct materials

b & c

indirect labor costs include: a. administrative assistant salary b. factory security guard wages c. assembly-line supervisor salary d. assembly-line worker wages

b & c

a cost that CAN be easily and conveniently traced to a specific cost object in....

direct cost

in an automobile manufacturing plant, the assembly-line workers are classified as _____ _____ cost

direct labor

examples of administrative costs

executive compensation, general accounting, and secretarial

salaries of factory supervisors and factory maintenance personnel are examples of ______ labor costs

indirect

An individual cost may be ______ to one cost object and ______ direct to another

indirect direct

a cost that CANNOT be easily and conveniently traced to a specific cost object in....

indirect cost

Indirect materials and indirect labor are classified as _______

manufacturing overhead

Inventoriable cost is another term for....

product cost