ACC 315 Day 3 End of Day Questions

You make wooden boxes. The wood you use to make the box is considered to be:

• direct

• indirect

• variable

• fixed

Total manufacturing costs is equal to the sum of three components. Which is not a component?

• Direct manufacturing labor

• Direct materials used

• Manufacturing overhead

• Direct materials purchased

Variable costs for one (1) unit is $35. Fixed costs for the manufacturing plant are $10,000. What are variable costs for 1000 units?

• $1,000

• $3,500

• $10,000

• $13,500

Which type of business typically does not have inventory?

• Service

• Merchandising

• Retailer

• Manufacturing