1. A department that provides services, assistance, and advice to other departments directly involved in the basic objectives of the organization is a _____ department.

A) staff B) line

2.

Cost Accounting Department salaries assigned to a department or job are

A) direct cost B) indirect cost

3.

Manufacturing costs are classified into two categories, direct and extra-ordinary, in terms of the decision-making needs of management.

A) True B) False

4.

Rental cost on a factory building is

A) direct cost B) indirect cost

5.

The Machining Department would be considered a ____ department.

A) staff B) line

6.

The term used to describe the cost of materials that are an integral part of total product cost is direct materials.

A) True B) False

7.

The Sales Department at large auto manufacturing company like Ford would be considered a ____ department.

A) line B) staff

8.

Materials used for specific jobs is

A) direct cost B) indirect cost

9.

The cost of finished products on hand that have not been sold is called

A) finished goods inventory B) stuff waiting to be sold C) work in process D) retained inventory

10.

Overhead costs are direct costs.

A) True B) False

11.

Factory materials incurred on non-specific jobs is

A) direct cost B) indirect cost

12.

Work in process consists of these costs of resources that have entered the manufacturing process on unfinished products.

Select all that apply A) direct materials B) feedback from customers C) direct labor D) cost of goods manufactured E) factory overhead

13.

Factory labor incurred on specific jobs is

A) direct cost B) indirect cost

14.

Indirect materials, indirect labor, and production-equipment depreciation are examples of

A) direct cost B) office labor cost C) factory overhead D) incurred cash expense

15.

The development of organizational objectives and the translation of theses objective into courses of action is called planning.

A) True B) False

16.

Design costs for a new product line is

A) direct cost B) indirect cost

17.

Direct labor and direct materials are considered extra-special costs of the product.

A) True B) False

18.

The primary difference between the income statements of a merchandiser and a manufacturer is the cost of goods manufactured statement.

A) True B) False

19.

Salary of vice president of manufacturing is

A) direct cost B) indirect cost

20.

Cash paid for factory utilities costs incurred is

A) direct cost B) indirect cost