Product costs are also known as inventoriable costs. True or False True False Contribution margin is: Multiple Choice Sales less cost of goods sold 6 Sales less variable production, variable selling, and variable administrative expenses. Sales less variable production expense. Sales less all variable and fixed expenses Differential costs can Multiple Choice only be fixed costs. only be variable costs. be either fixed or variable. be sunk costs. Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as: Multiple Choice direct materials. a period cost administrative expense. manufacturing overhead. Property taxes on a company's factory building would be classified as a(n) Multiple Choice product cost. opportunity cost. period cost variable cost During the month of May, direct labor cost totaled $13,560 and direct labor cost was 40 % of prime cost. If total manufacturing costs during May were $81,800, the manufacturing overhead was: Multiple Choice $20,340 $33,900 $68,240 $47900 Next Which of the following costs are always irrelevant in decision making? Multiple Choice avoidable costs sunk costs opportunity costs fixed costs Next 14 of 15 Prev