Which one of the following would not be classified as manufacturing overhead in a baking industry? *

Plant supervisor

Flour, sugar, butter

Insurance on factory building

None of the above

What does manufacturing overhead cost consist of? *

All manufacturing costs except direct materials and direct labor

Indirect materials but not indirect labor

Indirect labor but not indirect materials

None of the above

If a firm increases its activity level, *

Costs should remain the same

All costs will rise

No costs will remain the same

None of the above

Cost-volume-profit analysis is used primarily by management: *

For control purposes

As a planning tool

To prepare the income statement and the balance sheet

None of the above