Accounting for Direct Labor and Costs

Which of the following is not classified as direct labor?

Manufacturing costs include?

Which of the following are period costs?

Product costs consist of:

The sum of DM costs, DL costs, and MO incurred is the:

A cost which remains constant per unit at various levels of activities is a:

Fixed costs will usually not include:

Which one of the following types of costs is not related to inventory?

At what point are manufacturing costs expensed?

Direct materials are sometimes referred to as:

Direct labor is considered a:

A cost that a company incurs that is not a product cost is referred to as:

Period costs are associated with:

Period costs are expensed when?

Raw materials inventory increases when:

Budgets assist managers in all the following aspects of management except:

Development of the operating budget begins with the:

The direct materials quantity variance is based on the amount of materials:

The direct materials price variance is based on the amount of materials:

The variance that captures the efficient use of activity based on the cost of variable overhead is the:

Wages of supervisors are classified as indirect labor, not direct labor.
Direct materials, direct labor, and manufacturing overhead comprise manufacturing costs.
Selling expenses are categorized as period costs, separate from product costs.
Product costs consist of direct materials, direct labor, and manufacturing overhead.

Total manufacturing costs equal the sum of direct materials, direct labor, and manufacturing overhead incurred.
Variable costs remain constant per unit regardless of activity level.
Fixed costs do not typically include direct labor.

Period costs, which are not related to inventory, include selling and administrative expenses.
Manufacturing costs are expensed at the point of sale when finished goods are sold.
Direct materials are also known as raw materials.

Non-manufacturing costs refer to expenses that are not product costs and are considered period costs.
Period costs are tied to business administration and are expensed as incurred.
Raw materials inventory increases upon material purchases.

Budgets aid managers in planning, controlling, and evaluating, but not necessarily leading.
The development of the operating budget starts with the sales budget.
The direct materials quantity variance is calculated based on materials used.
The direct materials price variance considers the amount of materials purchased.
The variable overhead efficiency variance reflects efficient use regarding variable overhead costs.