Cost Management Paper 3


Many companies recognize three major categories of costs of manufacturing a product. These are direct materials, direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile?


A company experienced a machinery breakdown on one of its production lines. As a consequence of the breakdown, manufacturing fell behind schedule, and a decision was made to schedule overtime to return manufacturing to schedule. Which one of the following methods is the proper way to account for the overtime paid to the direct laborers?


A cost incurred for the benefit of more than one cost objective is


A cost that always can be directly traced to a cost object is


Conversion costs are


The allocation of general overhead costs to operating departments can be least justified in determining


A computer company charges indirect manufacturing costs to a project at a fixed percentage of a cost pool. This project is covered by a cost-plus government contract. Which of the following is an appropriate guideline for determining how costs are assigned to the pool?


In a traditional manufacturing operation, direct costs would normally include


In practice, items such as wood screws and glue used in the production of school desks and chairs wouldmost likely be classified as


Which one of the following items would not be considered a manufacturing cost?


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