1.

Which of the following costs would be included as part of direct labor?

a.an assembly-line supervisor

b.a materials handler

c.a cutter in the production of shelving

d.a janitor

2.

The efficient level of activity performance is called

a.activity capacity.

b.practical capacity.

c.unused capacity.

d.acquired capacity.

3.

Which of the following activities is associated with the cost management information system?

a.preparing reports for the SEC

b.preparing financial statements that conform to GAAP

c.preparing reports for division managers

d.preparing reports for the IRS

4.

The costs incurred for the acquisition of short-run activity capacity, usually as the result of yearly planning are called:

a.Committed fixed expenses

b.Mixed costs

c.Discretionary fixed expenses

d.Step-variable costs