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Manufacturers consider selling and administrative costs to be period costs, prime costs, conversion costs, inventoriable costs

Accounting

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1. Manufacturers consider selling and administrative costs to be
   period costs,
   prime costs,
   conversion costs,
   inventoriable costs.
2. An example of direct labor would be which of the following?
   Wages of factory security
   Salary of a production manager
   Wages of assembly line personnel
   Salary of the vice - president of operations
3. A snow removal business would be classified as a
   merchandising company,
   service company,
   simple company,
   manufacturing company.
4. The three basic components of inventoriable product costs are direct materials, direct labor, and
   manufacturing overhead,
   work in process,
   cost of goods manufactured,
   cost of goods sold.
5. Which of the following is true?
   Total fixed costs increase as production volume increases.
   Total fixed costs decrease as production volume decreases.
   Total variable costs stay constant as production volume increases.
   Total variable costs increase as production volume increases.
6. Direct materials for a company were $500,000: manufacturing overhead was $250,000; and direct labor was $770,000. Conversion costs would total?
   $750,000.
   $1,520,000.
   $1,020,000.
   $1,270,000.
7. Which of the following types of information differs between alternatives and can affect the future?
   Historical
   Relevant
   Irrelevant
   Predictable
8. Plowin' Supply plans to make 15,000 tractors at its plant. Fixed costs are $600,000 and variable costs are $200 per tractor. What is the average cost per tractor?
   $75
   $200
   $240
   $40
9. Which one of the following costs would be considered a direct cost of serving a particular customer at a McDonald's restaurant?
   The cost of heating the restaurant
   The depreciation on the restaurant building
   The salary of the restaurant manager
   The cost of the hamburger patty in the sandwich the customer ordered
10. Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?
    Cost of the automobile engines
    Plant supervisor salary
    Plant utilities
    Machinery depreciation in the factory