DE19-7 Listed on the following page are several terms relating to various cost definitions. Complete the following statements with one of these terms. You may use a term more than once, and some terms may not be used at all. Cost object Direct cost Direct materials

a. Direct labor Full product cost Indirect cost is expensed in the period incurred. Inventoriable product cost Manufacturing overhead Period cost

b. The product cost used for external reporting is called C. includes all the elements of the value chain and is used for internal decisions such as setting long-run average selling prices.

d. is initially considered an asset, and is not expensed until the related products are sold.

e. The sum of direct materials, direct labor, and manufacturing overhead is for a manu- facturing company.

f. is all costs incurred in the plant other than direct materials and direct labor.