question or completes the statement. lS. Seleet the ne that best answers the 1. A direct costs is a cost that is: A. Identifiable as controllable. B. Variable with respect to the volume of activity. C. Fixed with respect to the volume of activity. D. Traceable to a cost object. E. Sunk with respect to a cost object. 2. Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are: A. Sunk labor. B. Direct labor. C. Indirect labor. D. Finished labor. E. All of the above. 3. Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called: A. Administrative expenses B. Non-manufacturing costs. C. Sunk costs. D. Factory overhead. E. Pre-production costs. 4. The salary paid to the supervisor of an assembly line would normally be classified as: A. Direct labor. B. Indirect labor. C. A period cost. D. A general cost. E. An assembly cost 5. Classifying costs by behavior involves: A. Identifying fixed cost and variable cost. B. Identifying cost of goods sold and operating costs. C. Identifying all costs. D. Identifying costs in a physical manner. E. Identifying both quantitative and qualitative cost factors