Accounting II Chapter 1

Factory burden is a synonym for

-manufacturing (or factor) -overhead

A type of indirect cost incurred to benefit more than one cost object is a(n) ______ cost.

Common

Any item for which cost data is desired is called a(n)_________ ________

Cost Object

Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order.

Direct

True or false: All of a company's depreciation, property taxes and insurance premiums are considered manufacturing overhead

False

A manufacturing cost that cannot be easily traced to a specific cost object is a(n) ____ Cost

Indirect

Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as ______.

Manufacturing Overhead

A regional sales manager's salary is a direct cost of the regional office in which the sales manager works. T or F?

True

Cost objects include ______.

customers organizational subunits anything for which cost data is desired

Manufacturing costs include ______.

direct labor direct materials manufacturing overhead

Prime costs include ______.

direct materials direct labor

The materials that go into the final product are called ______ materials

raw