bnoP+_IREOLKDJ(UWRORWUOI
16e (Garrison)
10/13/2026,
tb(*((&#*!(*#*($$(*($(*$Y(&*
1:58:15 AMManageria
bnoP+_IREOLKDJ(UWRORWUOI
16e (Garrison)
10/13/2026,
tb(*((&#*!(*#*($$(*($(*$Y(&*
2:54:00 AM10/13/202
,MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
1:58:15
ray garrison
accounting
AMManagerial
16thray
edition
garrison
accounting
16e16th
(Garrison)
ray
edition
garrison
tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e16th
(Garrison)
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e (Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR
(&*$ **F VJyvhjbnoP+_IRE
Managerial Accounting, 16e (Garrison)
Chapter 1 Managerial Accounting and Cost Concepts
1) A factory supervisor's salary would be classified as an indirect cost with respect to a unit of
product.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2) A direct cost is a cost that can be easily traced to the particular cost object under
consideration.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
objects: direct costs and indirect costs.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3) A cost can be direct or indirect. The classification can change if the cost object changes.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
2:54:00
ray garrison
accounting
AM10/13/2026,
16thray
edition
garrison
1:58:15
16e16th
(Garrison)
AMManagerial
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16eaccounting
(Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
ray garrison 16th edition 16e (Garrison)
(&*$ **Ftb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR (&*$
,MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
1:58:15
ray garrison
accounting
AMManagerial
16thray
edition
garrison
accounting
16e16th
(Garrison)
ray
edition
garrison
tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e16th
(Garrison)
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e (Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR
(&*$ **F VJyvhjbnoP+_IRE
4) Wages paid to production supervisors would be classified as manufacturing overhead.
Answer: TRUE
Difficulty: 1 Easy
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
5) Selling costs are indirect costs.
Answer: FALSE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
6) The sum of all manufacturing costs except for direct materials and direct labor is called
manufacturing overhead.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
2:54:00
ray garrison
accounting
AM10/13/2026,
16thray
edition
garrison
1:58:15
16e16th
(Garrison)
AMManagerial
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16eaccounting
(Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
ray garrison 16th edition 16e (Garrison)
(&*$ **Ftb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR (&*$
,MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
1:58:15
ray garrison
accounting
AMManagerial
16thray
edition
garrison
accounting
16e16th
(Garrison)
ray
edition
garrison
tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e16th
(Garrison)
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e (Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR
(&*$ **F VJyvhjbnoP+_IRE
7) The three cost elements ordinarily included in product costs are direct materials, direct labor,
and manufacturing overhead.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
8) Administrative costs are indirect costs.
Answer: FALSE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
9) Depreciation is always considered a period cost for external financial reporting purposes in a
manufacturing company.
Answer: FALSE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies; Cost Classifications for Preparing
Financial Statements
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.; 01-03 Understand cost classifications used to prepare financial statements:
product costs and period costs.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
2:54:00
ray garrison
accounting
AM10/13/2026,
16thray
edition
garrison
1:58:15
16e16th
(Garrison)
AMManagerial
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16eaccounting
(Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
ray garrison 16th edition 16e (Garrison)
(&*$ **Ftb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR (&*$
16e (Garrison)
10/13/2026,
tb(*((&#*!(*#*($$(*($(*$Y(&*
1:58:15 AMManageria
bnoP+_IREOLKDJ(UWRORWUOI
16e (Garrison)
10/13/2026,
tb(*((&#*!(*#*($$(*($(*$Y(&*
2:54:00 AM10/13/202
,MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
1:58:15
ray garrison
accounting
AMManagerial
16thray
edition
garrison
accounting
16e16th
(Garrison)
ray
edition
garrison
tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e16th
(Garrison)
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e (Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR
(&*$ **F VJyvhjbnoP+_IRE
Managerial Accounting, 16e (Garrison)
Chapter 1 Managerial Accounting and Cost Concepts
1) A factory supervisor's salary would be classified as an indirect cost with respect to a unit of
product.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2) A direct cost is a cost that can be easily traced to the particular cost object under
consideration.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
objects: direct costs and indirect costs.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3) A cost can be direct or indirect. The classification can change if the cost object changes.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
2:54:00
ray garrison
accounting
AM10/13/2026,
16thray
edition
garrison
1:58:15
16e16th
(Garrison)
AMManagerial
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16eaccounting
(Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
ray garrison 16th edition 16e (Garrison)
(&*$ **Ftb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR (&*$
,MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
1:58:15
ray garrison
accounting
AMManagerial
16thray
edition
garrison
accounting
16e16th
(Garrison)
ray
edition
garrison
tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e16th
(Garrison)
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e (Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR
(&*$ **F VJyvhjbnoP+_IRE
4) Wages paid to production supervisors would be classified as manufacturing overhead.
Answer: TRUE
Difficulty: 1 Easy
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
5) Selling costs are indirect costs.
Answer: FALSE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
6) The sum of all manufacturing costs except for direct materials and direct labor is called
manufacturing overhead.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
2:54:00
ray garrison
accounting
AM10/13/2026,
16thray
edition
garrison
1:58:15
16e16th
(Garrison)
AMManagerial
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16eaccounting
(Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
ray garrison 16th edition 16e (Garrison)
(&*$ **Ftb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR (&*$
,MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
1:58:15
ray garrison
accounting
AMManagerial
16thray
edition
garrison
accounting
16e16th
(Garrison)
ray
edition
garrison
tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e16th
(Garrison)
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16e (Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR
(&*$ **F VJyvhjbnoP+_IRE
7) The three cost elements ordinarily included in product costs are direct materials, direct labor,
and manufacturing overhead.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
8) Administrative costs are indirect costs.
Answer: FALSE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
9) Depreciation is always considered a period cost for external financial reporting purposes in a
manufacturing company.
Answer: FALSE
Difficulty: 2 Medium
Topic: Cost Classifications for Manufacturing Companies; Cost Classifications for Preparing
Financial Statements
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
cost categories.; 01-03 Understand cost classifications used to prepare financial statements:
product costs and period costs.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
MManagerial
2026, 1:58:15
10/13/2026,
accounting
AMManagerial
2:54:00
ray garrison
accounting
AM10/13/2026,
16thray
edition
garrison
1:58:15
16e16th
(Garrison)
AMManagerial
editiontb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
16eaccounting
(Garrison) tb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
ray garrison 16th edition 16e (Garrison)
(&*$ **Ftb(*((&#*!(*#*($$(*($(*$Y(&*&$(*)&*)((&$*^$&*&$
VJyvhjbnoP+_IREOLKDJ(UWRORWUOI
(&*$ **F VJyvhjbnoP+_IREOLKDJ(UWROR (&*$
