7. There are two types of manufacturing costs: a. Direct and indirect b. Inventoriable costs, and expensed costs c. Period costs and permanent costs 8. There are two cost behaviors, which are they? 9. a. First In, and First Out b. Cost driver, cost object c. Building, and buying d. Fixed, and variable Tanner Co. produces Rawhide brand bones. The number of bones produced is called a a. cost driver. b. cost assignment. c. actual cost. 10. Tanner Co. produces Rawhide bones for dogs. Overhead costs (rent, heat, etc) of the production space is allocated to each rawhide bone at a specific rate determined at the beginning of the year until total costs are known and paid. We refer to this process as: a. cost allocation. b. actual cost c. cost driver ods sold 11. Target net income refers to an amount set by management which factors in plans the company would like to act upon. Plans may include buying more manufacturing equipment to introduce a new product line and/or paying dividends to shareholders increasing the market value of shares to encourage further investment and expansion into China. Plans depend on the company's direction. a. True b. False ove 12. If IcecreamCraze Co. is set to open next week, and sell 100 cones of its exciting flavor CurryOrange icecream should they expect a profit? a. Yes, selling cones equates profit. b. No. Depends on costs included.