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For Each of the Numbered Items, Choose the Appropriate Classifications

Question 190

Essay

For each of the numbered items, choose the appropriate classifications for a manufacturing company. If in doubt about whether the cost behavior is basically variable or fixed, decide on the basis of whether the total cost will fluctuate substantially over a wide range of volume. All items have two answers among the following possibilities.
A. Selling cost
B. Manufacturing costs, direct
C. Manufacturing costs, indirect
D. General and administrative cost
E. Fixed cost
F. Variable cost
1. advertising
2. treasurer's salary
3. depreciation on office equipment
4. depreciation on factory equipment
5. direct labor
6. direct materials
7. office supplies
8. foreman's salary
9. indirect labor
10. indirect materials

Correct Answer:

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1. A, E 6. B, F
2. D...

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