Work-in-process inventory would normally include:

A) direct materials in stock and awaiting use in the manufacturing process

B) goods partially worked on but not yet fully completed

C) goods fully completed but not yet sold

D) products in their original form intended to be sold without changing their basic form

2) Finished goods inventory would normally include:

A) direct materials in stock and awaiting use in the manufacturing process

B) goods partially worked on but not yet fully completed

C) goods fully completed but not yet sold

D) products in their original form intended to be sold without changing their basic form

3) Finished goods inventory would normally include:

A) direct materials in stock and awaiting use in the manufacturing process

B) goods partially worked on but not yet fully completed

C) goods fully completed but not yet sold

D) products in their original form intended to be sold without changing their basic form

4) ________ are the acquisition costs of all materials that eventually become part of the cost object and can be traced to the cost object.

A) Direct manufacturing labor costs

B) Direct material costs

C) Indirect manufacturing costs

D) Manufacturing overhead costs

5) ________ include the compensation of all manufacturing labor that can be traced to the cost object.

A) Direct manufacturing labor costs

B) Indirect manufacturing costs

C) Direct material costs

D) Manufacturing overhead costs

6) ________ are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost object.

A) Direct material costs

B) Period costs

C) Indirect manufacturing costs

D) Direct manufacturing labor costs

7) The income statement of a manufacturing firm reports:

A) period costs only

B) inventoriable costs only

C) both period and inventoriable costs

D) period and inventoriable costs but at different times; the reporting varies

8) The income statement of a service-sector firm reports:

A) period costs only

B) inventoriable costs only

C) both period and inventoriable costs

D) period and inventoriable costs but at different times; the reporting varies

9) Manufacturing costs include all of the following EXCEPT:

A) costs incurred inside the factory

B) both direct and indirect costs

C) both variable and fixed costs

D) both direct and period costs

10) Inventoriable costs:

A) include administrative and marketing costs

B) are expensed in the accounting period in which the products are sold

C) are particularly useful in management accounting