1. Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead.

2. Explain the difference between a product cost and a period cost.

3.Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.

4.what effect does an increase in volume have on (a) unit fixed costs, (b) unit variable costs, (c) total fixed costs, and (d) total variable costs?

5. Define the following terms: (a) cost behavior and (b) relevant range.

6. Distinguish between discretionary fixed costs and committed fixed costs.

7. Define the following terms: differential cost, opportunity cost, and sunk cost.