Ch 15 Intro to Managerial Accounting

A product, sales territory, department, or activity to which costs are traced is called a

• cost object

• direct cost

• direct material

• factory overhead costs

1. Raw materials costs are usually viewed as ________ costs.

• Product cost

• Period Cost

• Direct Labor

• Factory Overhead Cost

1. Factory overhead costs combined with direct labor costs are called __________ costs.

• factory overhead costs

• direct material costs

• prime costs

• conversion costs

A sacrifice made to obtain some benefit is a(n)

• profit

• price

• cost

• expense

An example of factory overhead is

• CEO salary

• electricity used to run assembly line

• raw materials used for product

• wage of workers in assembly line

1. Direct materials costs combined with direct labor costs are called (prime, conversion) costs.

• conversion costs

• prime costs

• direct material costs

• expenses

1. Advertising costs are usually viewed as (period, product) costs.

• prime

• convesrion

• product

• period

1. The plant manager’s salary would be considered __________ to the product.

• indirect

• direct

1. Long-term plans are called __________ plans.

• strategic

• operational

• mission

• corporate

Classification of these cost for an automobile manufacturer:
Wages of assembly line workers

• Factory Overhead Costs

• Direct Materials Costs

• Direct Labor Costs

• Indirect Labor Costs