41) Costs expensed on the income statement in the accounting period incurred are called: A) direct costs B) indirect C) period D) inventoriable costs Answer: C period costs 42) Prime costs include: A) direct materials and direct manufacturing costs B) direct manufacturing and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials Answer: A prime costs 43) Conversion costs include: A) direct materials and direct manufacturing labor costs B) direct manufacturing and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials Answer: B Terms: conversion costs 44) Total manufacturing costs equal: A) direct materials + prime costs B) direct materials + conversion costs C) direct manufacturing costs + prime costs D) direct manufacturing labor costs + conversion costs Answer: B Terms: prime costs, conversion costs 45) In the cost classification system used by manufacturing firms, assembly workers' wages would be included in all of the following EXCEPT: A) product cost B) prime cost C) conversion cost
41) Costs expensed on the income statement in the accounting period incurred are called: A) direct costs B) indirect C) period D) inventoriable costs Answer: C period costs 42) Prime costs include: A) direct materials and direct manufacturing costs B) direct manufacturing and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials Answer: A prime costs 43) Conversion costs include: A) direct materials and direct manufacturing labor costs B) direct manufacturing and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials Answer: B Terms: conversion costs 44) Total manufacturing costs equal: A) direct materials + prime costs B) direct materials + conversion costs C) direct manufacturing costs + prime costs D) direct manufacturing labor costs + conversion costs Answer: B Terms: prime costs, conversion costs 45) In the cost classification system used by manufacturing firms, assembly workers' wages would be included in all of the following EXCEPT: A) product cost B) prime cost C) conversion cost
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