$33-$ Which of the following may not be used as a basis for making allocations of indirect costs under the manufacturing burden rate method?

a$.$ Units produced

b$.$ Machine costs

c$.$ Machine hours

d$.$ Direct labor hours

$34-$Under the repair and capitalization regulations, factors to be considered in determining whether a taxpayer is performing routine maintenance include:

a$.$ The recurring nature of the activity

b$.$ Industry practice

c$.$ The taxpayer's treatment of the activity on its applicable financial statement

d$.$ A and B only

$35-$As provided in the regulations under $471,$ when using the full absorption costs, which of the following can be excluded from inventoriable costs?

a$.$ Interest expense

b$.$ Utilities

c$.$ Indirect labor

d$.$ None of the above

$36-$X Company has made sales throughout the year. If prices have been rising constantly throughout the year, then:

a$.$ Taxable income will be lower under FIFO

b$.$ Taxable income will be lower under LIFO

c$.$ Taxable income will be lower under weighted average

d$.$ Taxable income will be lower under specific identification

$37-$As provided in the regulations under $471$ when using the full absorption costs, which of the following costs must be included in or excluded from inventoriable costs, depending on their treatment for financial reporting purposes :

a$.$ Research and development costs

b$.$ Rent

c$.$ Factory administrative expenses

d$.$ Indirect labor

$38-$ The regulations provide that merchandise should be included in inventory of the taxpayer having ownership of the property. This is determined by all facts and circumstances. These include all of the following except:

a$.$ Intent of the parties

b$.$ Benefits and burdens of ownership

c$.$ Who bears the risk of loss

d$.$ State of incorporation

$39-$ Non$-$inventoriable costs under $263$A include all of the following except:

a$.$ Design costs

b$.$ Selling and distribution costs

c$.$ Taxes assessed on the basis of income

d$.$ Deductible service costs