Ch. 1 Concept Videos

Materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product are called ________. A) raw materials B) direct materials C) indirect materials

direct materials

A __________ is a cost that is incurred to support a number of cost objects but cannot be traced to them individually.

Common Cost

Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) _______________ of the branch.

Direct Cost

_______ is sometimes called "touch labor." A) Direct labor B) Indirect labor C) Overhead labor

Direct labor

Property taxes associated with a company's administrative facility are considered ________.

nonmanufacturing costs

Items such as indirect materials, indirect labor, maintenance and repairs on production equipment, depreciation, and insurance on manufacturing facilities are included in ________. A) nonmanufacturing costs B) manufacturing overhead costs C) direct costs

manufacturing overhead costs

Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) _______________ of selling a tour package.

Indirect Cost

Manufacturing costs include all of the following categories except ________. A) administrative costs B) direct labor C) direct materials D) manufacturing overhead

administrative costs