Home / Questions / Manufacturing overhead costs for a product include: A) direct material. B) operating ex
Manufacturing overhead costs for a product include:
A) direct material.
B) operating expenses.
C) prime costs.
D) indirect manufacturing costs.
13) When do inventoriable costs become expenses?
A) When direct materials are purchased
B) When the manufacturing process begins
C) When the manufacturing process is completed
D) None of the above
14) For a manufactured product, indirect materials and indirect labor are:
A) overhead and period costs.
B) overhead and product costs.
C) operating and period costs.
D) operating and product costs.
15) Manufacturers consider selling and administrative costs to be:
A) prime costs.
B) conversion costs.
C) inventoriable costs.
D) period costs.
16) When manufacturing products, which of the following is an example of a period cost?
A) Advertising expense
B) Depreciation expense on factory equipment
C) Indirect materials used in the factory
D) Property taxes on the plant
17) When manufacturing products, which of the following is an example of an inventoriable cost?
A) Depreciation on office equipment
B) Depreciation on store building
C) Depreciation on factory equipment
D) Sales salaries expenses
18) When manufacturing products, direct labor and direct materials are classified as:
A) period costs and expensed when incurred.
B) period costs and expensed when the goods are sold.
C) product costs and expensed when incurred.
D) product costs and expensed when the goods are sold.
19) Certain materials used in a manufacturing plant cannot be traced to a specific unit. These materials are called ________ materials.
A) general
B) direct
C) finished
D) indirect
20) Rent on a factory building would be considered to be:
A) a direct cost.
B) a period cost.
C) a product cost.
D) none of the above.
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