1. A projected cost for the future is a

a.	direct cost.
b.	fixed cost.
c.	inventoriable cost.
d.	budgeted cost.

2. Which of the following is a typical example of a variable cost?

a.	Sales commissions
b.	Rent
c.	Depreciation
d.	Salaries

3. Which of the following is a value-adding cost?

a.	Depreciation on personnel department equipment
b.	Depreciation on factory equipment
c.	Depreciation on office equipment
d.	Depreciation on sales department equipment

4. Prime costs consist of

a.	Direct materials and overhead.
b.	Direct labor and overhead.
c.	Direct labor and indirect labor.
d.	Direct materials and direct labor.