1. A causal or cost generator (cost driver)

a. it is an indirect cost of manufacture.

b. it is not related to manufacturing costs.

c. it is an activity that creates cost.

d. is a period cost.

2. Many companies use _____________ cost because ___________ costs are not known until the period ends.

a. standard; indirect manufacturing

b. real; indirect manufacturing costs

c. normal; direct

d. normal; indirect manufacturing costs.

3. In a cost-by-order system, the actual use of indirect materials will be recorded usually in the major general with a

a. debit to the materials account.

b. debit to the products in process account.

c. debit to the manufacturing overhead account control.

d. credit to the assigned manufacturing overhead account.