Expert Answers

1. The Machining Department would be considered which type of department?
A. Staff B. Line

2. Factory materials incurred on non-specific jobs is considered which cost?
A. Direct cost B. Indirect cost

3. The Sales Department at large auto manufacturing company like BMW would be considered why type of department?
A) line B) staff

4. Cost Accounting Department salaries assigned to a department or job are
A) direct cost B) indirect cost

5. Materials used for specific jobs is
A) direct cost B) indirect cost

6. Rental cost on a factory building is what type of cost?
A) direct cost B) indirect cost

7. Cash paid for factory utilities costs incurred what type of cost?
A) direct cost B) indirect cost

8 .Design costs for a new product line is what type of cost?
A) direct cost B) indirect cost

9. Factory labor incurred on specific jobs is what type of cost?
A) direct cost B) indirect cost

10. The primary difference between the income statements of a merchandiser and a manufacturer is the cost of goods manufactured statement.
A) True B) False

11. Direct labor and direct materials are considered extra-special costs of the product.
A) True B) False

12. Salary of Vice President of a manufacturing is what type of cost?
A.) Direct cost B.) Indirect cost

13. Manufacturing costs are classified into two categories, direct and extra-ordinary, in terms of the decision-making needs of management.
A) True B) False