7. The cost of direct materials would most likely be a(n): Variable cost. Fixed b. cost. c. Indirect cost. d. Differential cost. 8. Which of the following should be ignored when making a future decision? a Sunk costs Opportunity costs c. Differential costs d. Differential revenues 9. Which of the following companies is most likely to use job order costing? a. A chemical refinery b. A car repair business. c. An electric power plant d. An ice cream manufacturer 10. Bedeque Corporation incurred the following labor costs during the month of July, 2005: Sales salaries Direct labor Factory supervision The journal entry to record the above should be: $50,000 100,000 80,000 a. Debit Manufacturing Overhead $230,000 and credit Salaries and Wages Payable $230,000 Debit Work-in-Process $100,000, debit salary expense $50,000, debit Manufacturing Overhead $80,000 and credit Salaries and Wages Payable $230,000 c. Debit Salary expense $230,000 and credit salaries and wages payable $230,000; d. Debit Salaries and Wages Payable $230,000, credit Work-in-Process S100,000, credit Salary Expense $130,000. 11. Which of the following characteristics does not usually apply to process costing? a. The "costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of units transferred out. b. Units produced are unique and distinguishable from each other. c. The output of all processes except the final process is an input to the next process. d. A separate work in process account is kept for each processing department