Which of the following costs would be considered manufacturing overhead for a construction company that builds custom homes?

		Depreciation on construction equipment
		Hourly wages of carpenters
		Lumber
		Custom light fixtures

2.

1. Which of the following companies would most likely use process costing?

   		Advertising company
   		Builder of pools
   		Tax accountant
   		Soft drinks company

3.

Which of the following would be a benefit of the control function of managers?

		Control allows managers to evaluate progress toward corporate goals.
		Control helps managers establish income and expense goals.
		Control helps managers make product pricing decisions.
		Control communicates the goals of the organization to employees.

A cost that can NOT be easily traced to the end product would be called:

		an indirect cost
		a discretionary cost
		a product cost
		a direct cost