ASSIGNME 2-8 Explain why unit costs must often be interpreted with caution. 2-9 Describe how manufacturing., merchandising, and service-sector companies differ from one another 2-10 What are three different types of inventory that manufacturing companies hold? 2-11 Distinguish between inventoriable costs and period costs. 2-12 Define the following: direct material costs, direct manufacturing-labor costs, manufacturing over- head costs, prime costs, and conversion costs. 2-13 Describe the overtime-premium and idle-time categories of indirect labor 2-14 Define product cost. Describe three different purposes for computing product costs. 2-15 What are three common features of cost accounting and cost management? Multiple-Choice Questions My BECKER 2-16 Applewhite Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements is/are correct? 1. The cost of the direct materials in Applewhite's products is considered a variable cost II. The cost of the depreciation of Applewhite's plant machinery is considered a variable cost because Applewhite uses an accelerated depreciation method for both book and income tax purposes. III. The cost of electricity for Applewhite's manufacturing facility is considered a fixed cost, even if the cost of the electricity has both variable and fixed components 1. I, II, and Ill are correct 2 I only is correct 3. Il and ill only are correct. 4. None of the listed choices is correct. 2-17 Comprehensive Care Nursing Home is required by statute and regulation to maintain a minimum 3 to 1 ratio of direct service staff to residents to maintain the licensure associated with the Nursing Home beds. The salary expense associated with direct service staff for the Comprehensive Care Nursing Home would most likely be classified as: 1. Variable cost 2 Fixed cost 3. Overhead costs 4. Inventoriable costs. 2-18 Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct? 1. As the cost driver level increases, total fixed cost remains unchanged. II. As the cost driver level increases, unit foxed cost increases. III. As the cost driver level decreases, unit variable cost decreases. 1. I, II, and Ill are correct. 2 I and Il only are correct. 3. I only is correct 4. Il and ill only are correct