Quiz #1
1. Direct costs:
a. can be easily traced to a particular cost object.
2. Which of the following costs is classified as both a prime cost and a conversion cost?
a. Direct labor.
3. Manufacturing overhead includes:
a. all manufacturing costs except direct labor and direct materials.
4. The cost of lubricants used to grease a production machine in a manufacturing company is an example
of a(n):
a. indirect material cost.
5. The salary paid to the president of a company would be classified on the income statement as a(n):
a. administrative expense.
6. Which of the following would most likely NOT be included as manufacturing overhead in a furniture
factory?
a. The amount paid to the individual who stains a chair.
7. Northwest Hospital is a full-service hospital that provides everything from major surgery and
emergency room care to outpatient clinics.
1. Direct costs:
a. can be easily traced to a particular cost object.
2. Which of the following costs is classified as both a prime cost and a conversion cost?
a. Direct labor.
3. Manufacturing overhead includes:
a. all manufacturing costs except direct labor and direct materials.
4. The cost of lubricants used to grease a production machine in a manufacturing company is an example
of a(n):
a. indirect material cost.
5. The salary paid to the president of a company would be classified on the income statement as a(n):
a. administrative expense.
6. Which of the following would most likely NOT be included as manufacturing overhead in a furniture
factory?
a. The amount paid to the individual who stains a chair.
7. Northwest Hospital is a full-service hospital that provides everything from major surgery and
emergency room care to outpatient clinics.
