1.Define cost object, and give three examples.

2. Define direct costs and indirect costs.

3. Why do managers consider direct costs to be more accurate than indirect costs?

4. What is a cost driver? Give one example.

5. Describe how manufacturing-, merchandising-, and service-sector companies differ from each other.

6. What are three different types of inventory that manufacturing companies hold?

7. Do service-sector companies have inventoriable costs? Explain