ACCT 3121 Ch 2

27) ________ are all manufacturing costs that are related to the cost object but cannot be traced to that cost object in an economically feasible way. A) Indirect manufacturing costs B) Marketing costs incurred C) Variable manufacturing costs D) Custom duties paid for the materials

A) Indirect manufacturing costs

9) Which of the following companies is part of the manufacturing sector of our economy? A) Nike B) Barnes & Noble C) Corvette Law Firm D) Sears, Roebuck, and Company

A) Nike

25) Which of the following is not an inventoriable cost of a manufacturer? A) Sales commissions paid to sales representatives who sell the products made by the manufacturer B) Wages paid to assembly-line workers C) Plant depreciation incurred D) Property taxes on plant

A) Sales commissions paid to sales representatives who sell the products made by the manufacturer

1) Which of the following would be considered an actual cost of a current period? A) The $25 of materials in a manufactured chair that is ready to be shipped to the customer B) The $22 of direct material cost per unit assumed in the actual budget of a manufacturer of chairs C) The expected cost of materials for a chair as a result of engineering specifications D) The average of historical material cost data for a chair manufactured in several past accounting periods

A) The $25 of materials in a manufactured chair that is ready to be shipped to the customer

14) Which of the following statements is true? A) There is a cause-and-effect relationship between the cost driver and the amount of cost. B) Fixed costs have cost drivers over the short run. C) Over the short run all costs have cost drivers. D) Volume of production is a cost driver of distribution costs.

A) There is a cause-and-effect relationship between the cost driver and the amount of cost.

5) A cost system determines the cost of a cost object by ________. A) accumulating and then assigning costs B) accumulating costs C) assigning and then accumulating costs D) assigning costs

A) accumulating and then assigning costs

10) Which of the following is a fixed cost for an automobile manufacturing plant? A) administrative salaries B) electricity used by assembly-line machines C) sales commissions D) tires

A) administrative salaries

40) Period costs ________. A) are treated as expenses in the period they are incurred B) are directly traceable to products C) are treated as expenses in the following period they are incurred D) are also referred to as manufacturing overhead costs

A) are treated as expenses in the period they are incurred

41) Inventoriable costs are costs of a product that are considered ________. A) assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold B) liabilities in a company's balance sheet when the costs are incurred and that are expensed only when the product is sold C) assets in a company's income statement when the costs are capitalized and that are expensed as cost of goods sold only when the product is sold D) liabilities in a company's income statement when the costs are capitalized and that are expensed only when the product is sold

A) assets in a company's balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold

12) A common classification of costs is by business function. Which of the following classifications is not by business function? A) cost object B) research and development C) distribution D) production

A) cost object

14) For external reporting ________. A) costs are classified as either inventoriable or period costs B) costs reflect current values C) there are no prescribed rules since no one is exactly sure how investors and creditors will use these numbers D) costs include amounts that reflect both current and future benefits

A) costs are classified as either inventoriable or period costs

24) Which of the following is a period cost? A) costs incurred to provide customer service such as the operation of a 800 phone line to trouble shoot product problems and to answer questions about product warranties B) the cost of materials used to make a product when those materials are an insignificant part of the finished product C) the cost of direct labor D) the amount of depreciation expense recognized because of the use of plant assets such as building and equipment

A) costs incurred to provide customer service such as the operation of a 800 phone line to trouble shoot product problems and to answer questions about product warranties

3) When costs can be traced to a particular cost object in an economically feasible way, the cost is a: A) direct cost B) indirect cost C) allocated cost D) budgeted cost

A) direct cost

14) Prime costs include ________. A) direct materials and direct manufacturing labor costs B) direct manufacturing labor and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials

A) direct materials and direct manufacturing labor costs

4) Service-sector companies ________. A) do not produce tangible products but cost accounting is still utilized in service firms. B) do not manufacture a product and therefore do not apply or adapt cost accounting to their operations. C) purchase and then sell tangible products by changing their basic form and therefore need cost accounting. D) purchase merchandise then sell it without changing its basic form and therefor do not need cost accounting systems.

A) do not produce tangible products but cost accounting is still utilized in service firms.

4) Which of the following is true if the production volume decreases? A) fixed cost per unit increases B) average cost per unit decreases C) variable cost per unit increases D) variable cost per unit decreases

A) fixed cost per unit increases

16) One possible item that some companies include as direct manufacturing labor include ________. A) fringe benefits B) overtime C) idle time D) plant supervisor's salary

A) fringe benefits

3) Cost behavior refers to ________. A) how costs react to a change in the level of activity B) whether a cost is incurred in a manufacturing, merchandising, or service company C) classifying costs as either perpetual or period costs D) whether a particular expense is expensed in the same or the following period

A) how costs react to a change in the level of activity

19) Manufacturing overhead costs are also referred to as ________. A) indirect manufacturing costs B) prime costs C) direct manufacturing costs D) direct material

A) indirect manufacturing costs

9) Product costs for financial statements are: A) inventoriable costs for external reporting purposes B) exchange costs incurred during transportation C) only the costs incurred along the supply chain D) opportunity costs incurred for the decisions forgone

A) inventoriable costs for external reporting purposes

8) Under GAAP, only ________ can be assigned to inventories in the financial statements. A) manufacturing costs B) period costs C) cost of goods sold D) historical costs

A) manufacturing costs

30) Which of the following is an inventoriable cost? A) manufacturing overhead cost B) customer service costs C) distribution costs D) marketing costs

A) manufacturing overhead cost

7) Which of the following is included in product cost for pricing and product-mix decisions? A) marketing costs B) sunk costs C) opportunity costs D) cost of capital

A) marketing costs

20) The only type of inventory that Macy's, a major U.S. department store chain would report on its balance sheet is: A) merchandise inventory B) finished goods inventory C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts D) no inventory accounts as Macy's is a service-sector company

A) merchandise inventory

2) Which of the following is a fixed cost with respect to units produced in a factory? A) monthly rent payment for the building B) electricity expenses C) utilities cost of the building D) direct material costs

A) monthly rent payment for the building

1) Which of the following influences the make or buy decision to the company? A) opportunity cost B) sunk cost C) historical cost D) plant depreciation

A) opportunity cost

29) The income statement of a service-sector firm reports ________. A) period costs only B) cost of goods sold C) both period costs and cost of of goods sold D) direct labor costs

A) period costs only

35) For manufacturing firms, inventoriable costs include ________. A) plant supervisor salaries B) advertising costs to promote the sale of finished goods C) costs of dealing with customer questions about warranties after the sale D) distribution costs such the cost of operating a fleet of delivery vehicles

A) plant supervisor salaries

3) Merchandising-sectors ________. A) purchase and then sell tangible products without changing their basic form B) provide intangible products C) purchase materials and components and convert them into finished goods D) purchase and then sell tangible products by changing their basic form

A) purchase and then sell tangible products without changing their basic form

5) Cost tracing is ________. A) the assignment of direct costs to the chosen cost object B) a function of cost allocation C) the process of tracking both direct and indirect costs associated with a cost object D) the process of determining the actual cost of the cost object

A) the assignment of direct costs to the chosen cost object

21) Direct materials inventory costs would normally include ________. A) the cost of materials in stock are part of the cost object (product) and can be traced to that cost object in an economically feasible way B) the cost of goods partially worked on but not yet fully completed C) the cost of goods fully completed but not yet sold D) the cost of products in their original form intended to be sold without changing their basic form

A) the cost of materials in stock are part of the cost object (product) and can be traced to that cost object in an economically feasible way

14) Which of the following statements is true? A) A direct cost of one cost object will always be a direct cost of another cost object. B) Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs. C) All fixed costs are indirect costs. D) All direct costs are variable costs.

B) Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.

1) Which of the following formulas determine cost of goods sold in a merchandising entity? A) Beginning inventory + Purchases + Ending inventory = Cost of goods sold B) Beginning inventory + Purchases - Ending inventory = Costs of goods sold C) Beginning inventory - Purchases + Ending inventory = Cost of goods sold D) Beginning inventory - Ending inventory - Purchases = Cost of goods sold

B) Beginning inventory + Purchases - Ending inventory = Costs of goods sold

4) Which of the following statements about the direct/indirect cost classification is true? A) Indirect costs are always traced. B) Indirect costs are always allocated. C) The design of sales target affects the direct/indirect classification. D) The direct/indirect classification depends on the cost control measures.

B) Indirect costs are always allocated.

15) Which of the following statements is true? A) Product costs and design costs are interchangeable terms. B) Inventoriable costs are assigned to inventories under GAAP. C) Manufacturing costs are a special case of period costs. D) Intangible costs refer to a particular cost of a product.

B) Inventoriable costs are assigned to inventories under GAAP.

7) Which of the following companies is part of the service sector of our economy? A) Macy's B) KPMG C) Apple Inc. D) Amazon.com

B) KPMG

11) Which one of the following items is a direct cost? A) Customer-service costs of a multiproduct firm; Product A is the cost object. B) Printing costs incurred for payroll check processing; payroll check processing is the cost object. C) The salary of a maintenance supervisor in a multiproduct manufacturing plant; Product B is the cost object. D) Utility costs of the administrative offices; the accounting department is the cost object.

B) Printing costs incurred for payroll check processing; payroll check processing is the cost object.

8) Atlas Manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. Currently Atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? A) Total manufacturing costs will increase and unit manufacturing costs will stay the same. B) Total manufacturing costs will increase and unit manufacturing costs will decrease. C) Total manufacturing costs will stay the same and unit manufacturing costs will stay the same. D) Total manufacturing costs will increase and unit manufacturing costs will also increase.

B) Total manufacturing costs will increase and unit manufacturing costs will decrease.

8) Fixed costs depend on the ________. A) amount of resources used B) amount of unchanged costs for a given time period C) volume of production D) total number of units sold

B) amount of unchanged costs for a given time period

5) At a plant where a union agreement sets annual salaries and conditions, annual labor costs usually ________. A) are considered a variable cost B) are considered a fixed cost C) depend on the scheduling of floor workers D) depend on the scheduling of production runs

B) are considered a fixed cost

31) Inventoriable costs ________. A) include administrative and marketing costs B) are expensed in the accounting period in which the products are sold C) are expensed in the accounting period in which the products are manufactured D) are also referred to as nonmanufacturing costs

B) are expensed in the accounting period in which the products are sold

4) Cost assignment ________. A) includes future and arbitrary costs B) associates accumulated costs with certain cost objects C) is the same as cost accumulation D) is the difference between budgeted and actual costs

B) associates accumulated costs with certain cost objects

11) If each motorcycle requires a belt that costs $20 and 2,000 motorcycles are produced for the month, the total cost for belts is ________. A) considered to be a direct fixed cost B) considered to be a direct variable cost C) considered to be an indirect fixed cost D) considered to be an indirect variable cost

B) considered to be a direct variable cost

2) The collection of cost data in an organized way, such as in various categories such as materials, labor, and manufacturing overhead, is called: A) cost application B) cost accumulation C) cost assignment D) cost reporting

B) cost accumulation

2) All of the following are factors affecting direct versus indirect cost classification except: A) materiality of the cost B) cost accuracy C) information technology's ability to trace costs in an economically feasible way D) design of operations

B) cost accuracy

11) Product costs used for government contracts generally include ________. A) marketing costs, and customer service costs B) design costs and production costs C) all the costs for pricing and product-mix decisions D) production costs, distribution costs, marketing costs, and customer service costs

B) design costs and production costs

43) In the cost classification system used by manufacturing firms, assembly workers' wages would be included in ________. A) irrelevant cost B) direct manufacturing costs C) indirect manufacturing costs D) period cost

B) direct manufacturing costs

16) Conversion costs include ________. A) direct materials and direct manufacturing labor costs B) direct manufacturing labor and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials

B) direct manufacturing labor and manufacturing overhead costs

5) Wages paid to machine operators on an assembly line are classified as a ________. A) direct material cost B) direct manufacturing labor cost C) manufacturing overhead cost D) period cost

B) direct manufacturing labor cost

44) Total manufacturing costs are comprised of ________. A) direct materials costs and period costs B) direct materials costs, direct manufacturing labor costs, and manufacturing overhead costs C) indirect materials costs, indirect manufacturing labor costs, and manufacturing overhead costs D) prime costs and period costs

B) direct materials costs, direct manufacturing labor costs, and manufacturing overhead costs

17) Total manufacturing costs equal ________. A) direct materials plus prime costs B) direct materials plus conversion costs C) direct manufacturing labor costs plus sunk costs D) direct manufacturing labor costs plus conversion costs

B) direct materials plus conversion costs

1) A unit cost is computed by ________. A) multiplying total cost by the number of units produced B) dividing total cost by the number of units produced C) dividing variable cost by the number of units produced D) dividing fixed cost by the number of units produced

B) dividing total cost by the number of units produced

22) Work-in-process inventory would normally include ________. A) direct materials in stock and awaiting use in the manufacturing process B) goods partially worked on but not yet fully completed C) goods fully completed but not yet sold D) goods returned after being sold to be re-worked on further improvements and quality

B) goods partially worked on but not yet fully completed

6) Variable costs ________. A) are always indirect costs B) increase in total when the actual level of activity increases C) include most personnel costs and depreciation on machinery D) are never considered a part of prime cost

B) increase in total when the actual level of activity increases

36) A plant manufactures several different products. If a particular product is the cost object, then the wages of the plant supervisor can be classified as a(n) ________. A) direct cost because it occurs in the production facility B) indirect manufacturing cost and therefore is an inventoriable cost C) variable cost as it will vary on a per unit basis depending on volume D) period cost

B) indirect manufacturing cost and therefore is an inventoriable cost

18) Manufacturing overhead costs in an automobile manufacturing plant most likely include ________. A) labor costs of the painting department B) indirect material costs such as lubricants C) leather seat costs D) tire costs

B) indirect material costs such as lubricants

33) Costs that are initially recorded as assets and expensed when goods sold are called ________. A) period costs B) inventoriable costs C) irrelevant costs D) research and development costs

B) inventoriable costs

17) Which of the following cost is included in cost of goods sold? A) customer service cost B) manufacturing labor cost C) distribution cost D) marketing cost

B) manufacturing labor cost

9) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of a direct cost for the golf equipment line is ________. A) beverages provided daily in the plant break room for the entire staff B) monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver C) salaries of the clerical staff that work in the company administrative offices D) overheads incurred in producing both golf and soccer equipment

B) monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver

12) The most likely cost driver of distribution costs is the ________. A) number of parts within the product B) number of miles driven C) number of products manufactured D) number of production hours

B) number of miles driven

34) For merchandising companies, inventoriable costs include ________. A) selling expenses B) shipping (incoming) costs to acquire merchandise C) distribution costs D) outgoing freight and handling costs

B) shipping (incoming) costs to acquire merchandise

18) Which of the following is a cost driver for a company's human resource costs? A) the number of employees in the company B) the number of job applications processed C) the number of units sold D) the square footage of the office space used by the human resource department

B) the number of job applications processed

37) R&D costs are treated as period costs because ________. A) these costs may increase revenues in the current period B) these costs may increase revenues in the future period C) these costs may decrease revenues in the current period D) these costs are expensed when the goods are sold

B) these costs may increase revenues in the future period

15) Which of the following statements is true of direct costs? A) A direct cost of one cost object is a true sense of the budgeted costs. B) All variable costs are direct costs. C) A direct cost of one cost object can be an indirect cost of another cost object. D) All fixed costs are direct costs.

C) A direct cost of one cost object can be an indirect cost of another cost object.

2) ________ sector companies purchase materials and components and convert them into finished goods. A) Merchandising B) Service C) Manufacturing D) Professional

C) Manufacturing

8) Which of the following companies is part of the merchandising sector of our economy? A) Jaguar B) Hewlett Packard C) Whole Foods Market D) KPMG

C) Whole Foods Market

38) For an automobile manufacturer, period costs include the cost of ________. A) the dashboard B) labor used for assembly C) advertising D) assembly-line equipment

C) advertising

15) For a manufacturing company, indirect manufacturing costs would be included in ________. A) direct materials inventory only B) merchandise inventory only C) both work-in-process inventory and finished goods inventory D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

C) both work-in-process inventory and finished goods inventory

12) The balance sheet of a manufacturing-sector companies would report ________. A) only merchandise inventory B) only finished goods inventory C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts D) direct materials inventory and finished goods inventory accounts only

C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

9) Which one of the following is a variable cost for an insurance company? A) rent of the building B) CEO's salary C) electricity expenses D) property taxes

C) electricity expenses

26) Which of the following is a direct manufacturing cost? A) plant maintenance B) plant rent C) fringe benefits paid to machine operators D) property taxes on plant

C) fringe benefits paid to machine operators

23) Finished goods inventory would normally include ________. A) direct materials in stock and awaiting use in the manufacturing process B) goods partially worked on but not yet fully completed C) goods fully completed but not yet sold D) goods returned after being sold to be re-worked on further improvements and quality

C) goods fully completed but not yet sold

39) Period costs ________. A) include only fixed costs B) seldom influence financial success or failure C) include the cost of selling, delivering, and after-sales support for customers D) should be treated as an indirect cost rather than as a direct manufacturing cost

C) include the cost of selling, delivering, and after-sales support for customers

16) For a manufacturing-sector company, the cost of factory depreciation is classified as a ________. A) direct material cost B) direct manufacturing labor cost C) manufacturing overhead cost D) period cost

C) manufacturing overhead cost

13) The most likely cost driver of direct labor costs is the ________. A) number of machine setups for the product B) number of miles driven C) number of production hours D) number of machine hours

C) number of production hours

14) For a manufacturing company, direct labor costs would be included in ________. A) only the direct materials inventory to reflect the cost of labor that has worked using those materials B) only in the merchandise inventory to reflect the value added in the production process C) only in both work-in-process inventory and finished goods inventory D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

C) only in both work-in-process inventory and finished goods inventory

10) Under GAAP, for the purposes of calculating inventory costs, product costs include ________. A) all costs incurred along the value chain B) design costs C) only inventoriable costs D) only research and development costs

C) only inventoriable costs

42) Costs expensed on the income statement in the accounting period incurred are called ________. A) direct costs B) indirect costs C) period costs D) inventoriable costs

C) period costs

3) Budgeted costs are ________. A) the costs incurred this year B) the costs incurred last year C) planned or expected costs D) competitor's costs

C) planned or expected costs

10) Marriott International, would be classified as a(n) ________. A) manufacturing-sector company B) merchandising-sector company C) service-sector company D) financial services firm

C) service-sector company

6) Cost allocation is ________. A) the process of tracking both direct and indirect costs associated with a cost object B) the process of determining the opportunity cost of a cost object chosen C) the assignment of indirect costs to the chosen cost object D) made based on material acquisition document

C) the assignment of indirect costs to the chosen cost object

16) Within the relevant range, if there is a change in the level of the cost driver, then ________. A) total fixed costs and total variable costs will change B) total fixed costs and total variable costs will remain the same C) total fixed costs will remain the same and total variable costs will change D) total fixed costs will change and total variable costs will remain the same

C) total fixed costs will remain the same and total variable costs will change

1) Which of the following is true if the volume of sales increases (within a relevant range)? A) total fixed cost increases B) total variable cost decreases C) total variable cost increases D) total fixed cost decreases

C) total variable cost increases

32) Inventoriable costs are expensed on the income statement ________. A) when direct materials for the product are purchased B) when the direct materials are used in production. C) when the products are sold D) when the goods move from work-in process to finished goods account

C) when the products are sold

8) Classifying a cost as either direct or indirect depends upon ________. A) the behavior of the cost in response to volume changes B) whether the cost is expensed in the period in which it is incurred C) whether the cost can be traced to a particular cost object in an economically feasible way D) whether a cost is fixed or variable

C) whether the cost can be traced to a particular cost object in an economically feasible way

17) Outside the relevant range, variable costs, such as direct material costs ________. A) will decrease proportionately with changes in sales volumes B) will remain the same with changes in production volumes C) will not change proportionately with changes in production volumes D) will increase proportionately with changes in sales volumes

C) will not change proportionately with changes in production volumes

28) Which of the following is not reported on the income statement of a manufacturing firm? A) cost of goods sold B) administrative and selling expenses C) work in progress D) marketing and distribution costs

C) work in progress

2) Which of the following formulas determine cost of goods sold in a manufacturing entity? A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

13) Which of the following is true of indirect costs? A) Indirect costs are always considered sunk costs. B) All indirect costs are included in cost of goods sold. C) Indirect costs always vary in direct proportion to the level of production. D) Indirect costs cannot be traced to a particular cost object in an economically feasible way.

D) Indirect costs cannot be traced to a particular cost object in an economically feasible way.

7) The determination of a cost as either direct or indirect depends upon the ________. A) accounting standards B) tax system chosen C) inventory valuation D) cost object chosen

D) cost object chosen

13) For a manufacturing company, direct material costs may be included in ________. A) only the direct materials inventory account B) only in the merchandise inventory account reflecting the inventory on hand C) only in both work-in-process inventory and finished goods inventory D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

12) Indirect manufacturing costs ________. A) can be traced to the product that created the costs B) can be easily identified with the cost object C) generally include the cost of material and the cost of labor D) may include both variable and fixed costs

D) may include both variable and fixed costs

11) The balance sheet of a service-sector companies would show ________. A) work-in-process inventory, and finished goods inventory accounts B) only finished goods inventory C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts D) no inventory accounts

D) no inventory accounts

13) Which of the following might explain why one manager might assign certain costs to a cost object while a different manager might assign some different costs to that same cost object? A) one manager might classify one cost as direct while another might classify that same cost as indirect B) For financial statement purposes, one manager might include all the costs of the value chain while the other might only only include GAAP cost C) one manager might value an inventory item for the balance sheet as the sum of all the value chain costs while another manager might choose to only recognize variable costs as inventoribale costs for GAAP purposes. D) one manager might be pricing a cost object while the other manager might be seeking the inventoriable cost

D) one manager might be pricing a cost object while the other manager might be seeking the inventoriable cost

1) Which of the following is a manufacturing overhead cost? A) the use of direct materials in the making of a finished good B) labor cost of plant workers that can be traced accurately and easily to a particular product C) cost of materials that can be traced to individual products in an economically feasible manner D) overtime premiums paid to plant workers

D) overtime premiums paid to plant workers

3) Many government agency contracts exclude all but which of the following costs from reimbursement under cost-plus agreements? A) marketing costs B) design costs C) production costs D) part of the research and development costs

D) part of the research and development costs

10) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of indirect cost for the soccer equipment line is the ________. A) material used to make the soccer balls B) labor to shape the leather used to make the soccer ball C) material used to manufacture the soccer studs D) property taxes paid on the land and building (plant)

D) property taxes paid on the land and building (plant)

15) A band of normal activity or volume in which specific cost-volume relationships are maintained is referred to as the ________. A) average range B) cost-allocation range C) cost driver range D) relevant range

D) relevant range

1) Which of the following factors affect the direct/indirect classification of a cost? A) the level of budgeted profit for the next year B) the estimation of time required to complete the order C) the ability to execute an order in the most cost-efficient manner D) the design where a particular area is dedicated to a specific cost object

D) the design where a particular area is dedicated to a specific cost object