QUESTION 5

1. (06) Which of the following is a direct cost for a factory making two stationery items (knives and erasers)?

   	A.	factory general manager's salary
   	B.	cost of electricity
   	C.	cost of steel
   	D.	all manufacturing overhead costs incurred in the factory

3 points

QUESTION 6

1. (07) Which of the following is false regarding manufacturing overhead costs?

   	A.	They are allocated among different cost objects.
   	B.	They are indirect costs.
   	C.	Period costs cannot be manufacturing overhead costs.
   	D.	The exact amount of the cost incurred by a particular cost object is known.