7. Which of the following statements are TRUE about the classification of cost? A. The variable cost can only be classified as a direct cost. B. The fixed cost can be classified as a direct cost but cannot be classified as an indirect cost. C. The fixed cost can be classified as an indirect cost but cannot be classified as a direct cost. D. The fixed cost can be classified as a direct cost or an indirect cost. 8. In normal costing, the indirect cost is allocated based on... A. the budgeted indirect cost rate(s) times the actual quantity of the cost allocation base(s). B. the budgeted indirect cost rate(s) times the budgeted quantity of the cost allocation base(s). C. the actual indirect-cost rate(s) times the actual quantity of the cost allocation base(s). D. the actual indirect-cost rate(s) times the budgeted quantity of the cost allocation base(s). 9. Companies that manufacture identical items through a series of uniform production steps use to determine cost per unit sold. A. a process costing system B. a job order costing system C. the weighted average method D. the first-in, first-out method 10. Which of the following statements correctly describes the term "conversion costs"? A. the cost to convert finished goods to sales to customers B. the cost incurred for direct and indirect materials during production C. the cost of direct materials, direct labour, and manufacturing overhead costs incurred during production D. the cost of direct labour combined with manufacturing overhead