1) A manufacturing plant produces two product lines: golf equ. equipment. An example of a direct cost for the golf equipment nes: golf equipment and soccer irect cost for the golf equipment line is A) beverages provided daily in the plant break room for the entire B) monthly lease payments for a specialized piece of equipo the golf driver C) salaries of the clerical staff that work in the clerical staff that work in the company administrative offices D) overheads incurred in producing both golf and soccer equipment eak room for the entire staff of equipment needed to manufacture 2) 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 Whether the cost can be traced to particular cost obiect in an economically se ost obiect in an economically feasible way D) whether a cost is fixed or variable 3) 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 4) Cost behavior refers to A) whether a cost is incurred in a manufacturing, merchandising, or service company B) classifying costs as either perpetual or period costs C) whether a particular expense is expensed in the same or the following period D) how costs react to a change in the level of activity 5) Variable costs: A) are always indirect costs B) can always be traced directly to the cost object C) increase in total when the actual level of activity increases D) include most personnel costs and depreciation on machinery 6.) At a plant where a union agreement sets ut where a union agreement sets annual salaries and conditions, annual labor costs usually: A) depend on the scheduling of floor workers B) are considered a fixed cost C) depend on the scheduling of production runs D) are considered a variable cost 7) Fixed costs depend on the: (within the relevant range) A) amount of resources used B) volume of production C) amount of resources acquired D) volume of sales 8) Within the relevant range, if there is a change in the level of the cost driver, then: A) total fixed costs will remain the same and total variable costs will change B) total fixed costs will change and total variable costs will remain the same C) total fixed costs and total variable costs will change D) total fixed costs and total variable costs will remain the same 9 Conversion costs include: A) direct materials and direct manufacturing labor costs B) direct materials and manufacturing overhead costs C) direct manufacturing labor and manufacturing overhead costs D) only direct materials 10) Prime costs include: A) direct manufacturing labor and manufacturing overhead costs B) direct materials and direct manufacturing labora C) direct materials and manufacturing overhead costs D) only direct materials 11) The income statement of a service-sector firm reports: A) inventoriable costs only B) both period and inventoriable costs C) period and inventoriable costs but at different times; the reporting varies D) period costs only
