1. The matching principle states which of the following? (Mark all that apply)

Group of answer choices

A. The administrative costs associated with the sale of a product should be held in inventory until the product is sold

B. The advertising costs associated with the sale of a product should be recognized in the same period as the revenue is recognized

C. The production costs associated with the sale of a product should be recognized in the same period as the revenue is recognized

D. The period costs associated with the sale of a product should be recognized in the same period as the revenue is recognized

E. The production costs associated with the sale of a product should be held in inventory until the product is sold

2. The costs associated with the janitorial services provided by a 3rd party vendor to keep the factory floor clean would best be categorized as which of the following? (mark all that apply)

Group of answer choices

A. direct material

B. overhead

C. indirect labor

D. period cost

E. product cost

3. The process engineer at a soap factory is an example of which of the following types of costs? (Mark all that apply)

Group of answer choices

A. Overhead

B. Indirect labor

C. Period costs

D. Direct labor

E. Indirect materials

F. Direct materials

G. Product costs

4. Janitorial supplies used in a factory restroom is an example of which of the following costs? (Mark all that apply)

Group of answer choices

A. Indirect labor

B. Direct labor

C. Direct materials

D. Overhead

E. Indirect materials

F. Product costs

5. The cost of the janitorial service provided by a subcontracted firm at the factory would be considered which of the following types of costs? (Mark all that apply)

Group of answer choices

A. Period costs

B. Product costs

C. Indirect labor

D. Direct materials

E. Direct labor

F. Indirect materials

G. Overhead

6. The Vice President of Marketing for a company that subcontracts all production out to a third party vendor would be considered which of the following types of costs? (Mark all that apply)

Group of answer choices

A. Direct labor

B. Indirect materials

C. Indirect labor

D. Direct materials

E. Product costs

F. Period costs

7. Martin Company has a current volume of 47,000 units which results in profit of $12,000. To reduce the volume needed to achieve the same level of profit, Martin could (mark all answers that apply and assume all changes listed below happen without impacting any other factors)

Group of answer choices

A. reduce the corporate tax rate.

B. increase the corporate tax rate.

C. decrease variable costs.

D. decrease fixed costs.

E. increase the sales price per unit.

F. increase fixed costs.

G. increase variable costs.

H. reduce the sales price per unit.

I. increase the contribution margin per unit.

J. reduce the contribution margin per unit.