PRINCIPAL OF ACCOUNTING 2 (questions)

Which of the following positions would have a salary or wage that is classified as a direct labor cost by a baking company? a. Salesperson b. Factory supervisor c. Company president d. Baker Super Sieep Hotel has 2,500 guests who stayed for two nights and rented 180 rooms. How many guest nights did the hotel have during this period? a. 180 b. 2,500 c. 90 d. 5,000 Which of the following would be classified as an indirect cost by a baking company? a. Salaries of bakers b. Flour c. Frosting d. Salaries of production supervisors The cost of materials used in production is determined using a. factory overhead. b. finished goods inventory. c. materials purchased. d. direct labor. Which of the following statements regarding the differences between managerial accounting applications for manufacturing and service companies is true? a. Service companies require a physical production site. b. Service companies incur both product costs and period costs. c. Service companies have larger materials, work in process, and finished goods inventories than manufacturing companies. d. Service companies may use cost of services on the income statement rather than cost of goods sold