Which of the following is true?

A.

A marginal cost is the cost of making one more unit.

B.

Manufacturing overhead is always a variable cost.

C.

Direct materials are considered to be fixed costs.

D.

The average cost can be used to predict total costs at other volumes..

Which of the following companies would be most likely to use a job costing system rather than a process costing system?

A.

Legal firm

B.

Beverage bottler

C.

Cereal manufacturer

D.

Steel manufacturer

In a job costing system, which of the following statements about materials is not correct?

A.

Materials that cannot be traced to a particular job are treated as manufacturing overhead.

B.

Materials used during production are always classified as direct materials.

C.

A materials requisition is used to request materials needed from the storeroom.

D.

The job cost record for a job will contain all direct material used for that particular job.