What are product costs called that are regarded as an asset for financial reporting under GAAP?

A. direct costs

B. inventoriable costs

C. mixed costs

D. overhead costs

Manufacturing overhead costs from a manufactured product are what type of cost?

Select one:

A. product cost

B. period cost

C. indirect cost

D. both A and C are correct

For a manufactured product, indirect labor and indirect materials are classified as what type of costs?

Select one:

A. operating costs and product costs

B. manufacturing overhead and product costs

C. operating costs and period costs

D. manufacturing overhead and period costs

What type of costs are selling and administrative costs for a manufacturer?

Select one:

A. direct costs

B. indirect costs

C. period costs

D. inventoriable costs

When manufacturing products, which of the following is an example of a period cost?

Select one:

A. indirect materials

B. depreciation on factory equipment

C. property taxes on plant

D. advertising expense

When manufacturing products, how are direct labor and direct materials classified?

Select one:

A. period costs and expensed when the goods are sold

B. product costs and expensed when incurred

C. product costs and expensed when the goods are sold

D. period costs and expensed when incurred

What are conversion costs?

Select one:

A. direct labor and manufacturing overhead

B. direct materials and manufacturing overhead

C. direct materials, direct labor, and manufacturing overhead

D. direct materials and direct labor

What are indirect costs incurred in a manufacturing plant that cannot be traced directly to a manufactured product treated as?

Select one:

A. period costs and expensed when incurred

B. period costs and expensed when the goods are sold

C. product costs and expensed when incurred

D. product costs and expensed when the goods are sold

In the manufacture of a product, how is rent expense incurred on a factory building treated?

Select one:

A. as a product cost

B. as a period cost

C. as a direct cost

D. both a period cost and a direct cost

In the manufacture of a product, which of the following is an example of direct labor?

Select one:

A. salary of production manager

B. salary of vice president of production

C. wages of factory security

D. wages of assembly line personnel

In the manufacture of a product, which statement describes direct materials?

Select one:

A. They are used to determine total manufacturing overhead.

B. They cannot be separately and conveniently traced through the manufacturing process to finished goods inventory.

C. They do not become part of the finished product.

D. They are used to determine total inventoriable product costs.

In the manufacture of a product, which of the following is an example of indirect labor?

Select one:

A. machine operators

B. plant managers

C. salesmen

D. chief operating officer

Which of the following are included in manufacturing overhead?

Select one:

A. direct materials and direct labor

B. indirect materials and direct materials

C. factory rent and direct labor

D. indirect labor and indirect materials

In the manufacture of a product, which of the following is an example of manufacturing overhead?

Select one:

A. wages of secretaries in the corporate office

B. salaries of sales personnel

C. wages of maintenance personnel in the factory

D. wages of machine operators

The accountant for a manufacturer is ready to prepare income statements. What must be calculated first?

Select one:

A. cost of goods manufactured

B. cost of goods available for sale

C. cost of goods sold

D. manufacturing overhead

The only difference in the balance sheets of service businesses, manufacturing businesses, and merchandising businesses relates to

Select one:

A. investments

B. equity

C. current liabilities

D. current assets

Which of the following is a characteristic of a service company?

Select one:

A. It does not have tangible products intended for sale.

B. It has a single category of inventory.

C. It transforms raw materials into finished goods.

D. It makes a product.

For a manufacturer, to what is beginning work in process equal?

Select one:

A. ending work in process plus manufacturing costs incurred during the current period

B. cost of goods manufactured minus ending work in process plus manufacturing costs incurred in the current period

C. manufacturing costs incurred during the current period minus ending work in process

D. cost of goods manufactured plus ending work in process minus manufacturing costs incurred in the current period

When making a decision to buy a computer, all of the following should be considered except for

Select one:

A. qualitative characteristics.

B. differential costs.

C. sunk costs.

D. relevant costs.

What are the two basic types of product costing systems?

Select one:

A. periodic costing and perpetual costing

B. product costing and materials inventory costing

C. job costing and process costing

D. periodic costing and process costing