A factory janitor's wages would be classified as ________ when determining the cost of a manufactured product.

91) A factory janitor's wages would be classified as ________ when determining the cost of a manufactured product.
A) an indirect cost
B) a direct cost
C) a period cost
D) none of the above
Answer:  A
Diff: 1
LO:  2-3
EOC:  S2-4
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

92) A salesperson's salary would be classified as ________ when determining the cost of a manufactured product.
A) a direct cost
B) a period cost
C) an indirect cost
D) none of the above
Answer:  B
Diff: 1
LO:  2-3
EOC:  S2-5
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

93) The cost of lighting the factory would be classified as ________ when determining the cost of a manufactured product.
A) an indirect cost
B) a direct cost
C) a period cost
D) none of the above
Answer:  A
Diff: 1
LO:  2-3
EOC:  S2-4
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

94) Which of the following would not be considered a direct material for a mattress?
A) Fabric
B) Lumber
C) Glue
D) Steel
Answer:  C
Diff: 1
LO:  2-3
EOC:  S2-4
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

95) All of the following would be considered a direct material for a kitchen cabinet except
A) wood.
B) stain.
C) sand paper.
D) hinges.
Answer:  C
Diff: 1
LO:  2-3
EOC:  S2-4
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

96) Prime costs consist of
A) direct materials and direct labor.
B) direct labor and manufacturing overhead.
C) direct materials and manufacturing overhead.
D) direct materials, direct labor and manufacturing overhead.
Answer:  A
Diff: 1
LO:  2-3
EOC:  E2-20A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

97) Conversion costs consist of
A) direct materials and direct labor.
B) direct labor and manufacturing overhead.
C) direct materials and manufacturing overhead.
D) direct materials, direct labor and manufacturing overhead.
Answer:  B
Diff: 1
LO:  2-3
EOC:  E2-20A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

98) An example of direct labor would be which of the following?
A) Salary of a production manager
B) Salary of the vice-president of operations
C) Wages of factory security
D) Wages of assembly line personnel
Answer:  D
Diff: 1
LO:  2-3
EOC:  E2-21A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


99) Which of the following is an example of direct labor?
A) Wages of a managerial accountant
B) Wages of a machine operator
C) Salary of the vice-president of operations
D) Wages of the CFO
Answer:  B
Diff: 1
LO:  2-3
EOC:  E2-21A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
100) Which statement describes direct materials in a manufacturing setting?
A) Direct materials are used to determine total manufacturing overhead.
B) Direct materials are used to determine total inventoriable product costs.
C) Direct materials cannot be separately and conveniently traced.
D) Direct materials do not become part of the finished product.
Answer:  B
Diff: 2
LO:  2-3
EOC:  S2-4
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits