d. Indirect labor and variable factory everhead In a retailing enterprise, the Income statement includes cost of goods sold. Cost of goods sold is, in effect, purchase adjusted for change in inventory. In a manufacturing company. The purchases account is replaced by which account? a. Inventory b. Cost of goods sold c. Finished good's d. Cost of goods manufactured 4. All cost related to the manufacturing function in a company are: a Prime cost b. Direct cost c. Product cost d. Conversion Cost 5. Indirect materials are Conversion Cost Manufacturing Prime Cost a Yes Yes Yes b. Yes Yes No C. No Yes Yes d. No No No * 6. The wages of factory security guard should be classified as a. Factory overhead cost b. Direct labor cost c. Period cost d. Prime cost 7. Job-order cost accounting system and process-cost accounting system differ in the way: a. Manufacturing costs are assigned to production runs and the number of uniys for which costs are averaged. b Orders are taken and the number of units in the orders. C. Product profitability is determined and compared with planed costs. d. Manufacturing processes can be accomplished and the number of production runs that may be performed in a year. 8. A company services office equipment. Some customers bring their equipment to the company's service shop, other customers prefer to have the company's service personnel come to their offices to repair their equipment. The most appropriate costing method for the company is a. A Job order costing system. b. An activity-based costing system c. A process costing system d. An operation costing system. 9. In job-order costing the basic document to accumulate the cost of each order is the a Invoice b. Purchase Order c. Requisition order d: Job-cost sheet 10. Companies characterized by the production of heterogenousprodcuts will most likely used which of the following methods for the purposes of averaging costs and providing management with unit cost data? a Process costing b. Job-order costing c. Direct costing Absorption costing.