1. Which of the following would be classified as direct materials for an auto manufacturer?

a.Material used for door panels

b.Factory light bulbs

c.Steel

d.Drill bits

2. Which of the following is a period cost?

a.Sales commissions

b.Wages of an assembly worker

c.Power

d.Depreciation on factory equipment

3. Which of the following costs appear on a balance sheet?

a.Period Costs

b.Product Costs

c.Opportunity costs

d.Selling expenses

4.

Eliminating a product or segment will usually eliminates all of the product's or segment's variable costs.

True

False