Cost Concept

A department could be considered a cost object.

• True

• False

The materiality of the cost is a factor in classifying the cost as a direct or indirect cost.

• True

• False

Fixed costs vary with the level of production or sales volume.

• True

• False

Manufacturing overhead is an indirect cost with respect to units of product.

• True

• False

Variable costs per unit are affected by changes in activity

• True

• False