7. Which of the following best describes costs assigned to the product under the absorption costing method? Direct labor (DL) Direct materials (DM) Variable selling and administrative Variable manufacturing overhead Fixed selling and administrative Fixed manufacturing overhead

a.DL, DM, variable selling and administrative costs, and variable manufacturing overhead.

b.DL, DM, and variable manufacturing overhead.

c.DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.

d.DL and DM.

e.DL, DM, fixed selling and administrative, and fixed manufacturing overhead.

9. Special order decisions should be made using variable costing because:

a.Special order decisions usually focus on fixed costs

b.Variable costing includes all overhead costs in the calculation of product costs.

c. variable costs will increase as a result of the special order.

d. All costs, including variable and fixed costs, must be covered by the special order pricing.

1. Which of the following best describes costs assigned to the product under the variable costing method? Direct labor (DL) Direct materials (DM) Variable selling and administrative Variable manufacturing overhead Fixed selling and administrative Fixed manufacturing overhead

a.DL, DM, variable selling and administrative costs, and variable manufacturing overhead.

b.DL, DM, and variable manufacturing overhead.

c.DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.

d.DL and DM.

c.DL, DM, fixed selling and administrative, and fixed manufacturing overhead.

2. Which of the following is not considered a product cost?

a.Direct materials.

b.Research and development costs.

c.Direct labor.

d.Inventoriable costs.

e.Indirect manufacturing costs.