1. For which of the following businesses would a process cost system be appropriate?

Auto repair service

Paint manufacturer

Specialty printer

Custom furniture manufacturer

2.The two categories of cost comprising conversion costs are:

Direct labor and indirect labor

Direct labor and factory overhead

Factory overhead and direct materials

Direct labor and direct materials

3.The two categories of cost comprising Prime costs are:

Direct labor and indirect labor

Direct labor and factory overhead

Factory overhead and direct materials

Direct labor and direct materials