1.

Selling costs can be either direct or indirect costs.

True

False

2.

A direct cost is a cost that cannot be easily traced to the particular cost object under consideration.

True

False

3.

Property taxes and insurance premiums paid on a factory building are examples of period costs.

True

False

4.

Conversion cost equals product cost less direct labor cost.

True

False

5.

Thread that is used in the production of mattresses is an indirect material that is therefore classified as manufacturing overhead.

True

False