Accounting 3050

True or False.

1. A product cost is a manufacturing cost.

2. advertising expense is a product cost

3. there are three types of product cost: direct material, direct labor, and administrative expenses

4. prime costs are direct material and direct labor.

5. conversion costs are manufacturing overhead and direct material

6. a relevant cost differs between decision alternatives

7. a sunk cost must be incurred in the future

8. direct material is a period cost

9. product costs can be variable costs

10. direct costs can be traced conveniently to a specific product

11. an opportunity cost is expensed in the period incurred

12. cost is the value given up in an exchange of goods and services